Treasury Support Line for Micro and Small Businesses
Following the announcement made by the government of the launch of new instruments to support companies, the legislation on the Treasury Support Line for Micro and Small Enterprises (MPE) was published on 28 July.
In this sense, the information available to date regarding this support is presented below.
Treasury Helpline for MPE
- Objective: Support the treasury of micro and small companies that are in a situation of business crisis;
- Beneficiaries: Micro and Small companies, from any sector of activity that are in a situation of business crisis (Break of billing equal to or greater than 25% compared between the full month prior to the order and the same month of 2020 or 2019, or the average of monthly billing for the last 6 months prior to the order);
- Initial allocation of the line: €100M (which may be increased up to €750M);
- Deadline for requesting support: December 31, 2021;
- Beneficiary's Obligations: Maintain the number of existing jobs on 1 October 2020, for a minimum period of one year after granting the funding.
The specific conditions of support, such as repayment terms, grace periods, associated interest rates and criteria for defining the support to be granted, will be published by the government through an ordinance in the coming days. However, it is expected that the amount of support will be associated with the size of the company and the number of jobs, having been advanced in the presentation of support by the minister of economy, the idea would be to allocate the amount of €3.000 per post. of work under the company, establishing maximum amounts of €25.000 for micro-enterprises and €75.000 for small businesses.
At DFK, we are available to inform and provide the necessary advice to companies in carrying out a prior assessment of the impacts of these instruments on their financial structure.
Talk to us.