Existing lines to support companies in the current situation

As part of the support provided by the State for companies affected by the COVID-19 pandemic, four specific support lines were launched:

• 600 million euros for restaurants and similar.
• 200 million euros for Tourism - Travel Agencies, entertainment, event organization and similar.
• 900 million euros for Tourism - Business Ventures and Accommodation.
• 4.5 billion euros to support economic activity

Sole proprietorship (with no organized accounting), Micro-businesses and SMEs (Small and Medium Businesses), Small Mid Cap and Mid Cap with:

• positive equity on the last approved balance sheet or negative equity and regularization of the situation on the approved interim balance sheet up to the date of the transaction.
• location in national territory.
• activity included in the list of Portuguese Classification of Economic Activities (CAE) in force for each specific line.
• regularized situation with the Fund to Support Financing for Innovation (FINOVA), as well as with the Banking, Tax, and Social Security administrations at the date of the financing contract.

Classification of companies:

• SMEs (up to 249 employees); 
• Small Mid Caps (between 250 and 499 employees);
• Mid Caps (between 500 and 2,999 employees).

Operations designed exclusively to finance treasury/working capital needs with a redeemable financing modality over the short and medium term.

• Operation term:
  • Up to 6 years.
• Interest-only term:
  • Up to 18 months.
• Principal repayment:
  • Equal, successive and deferred installments on a monthly basis.
• Capital usage term:
  • Up to 12 months after the date of taking out the operations, with monthly, equal, and successive uses.

Interest rate:

• It can be variable or fixed.
• In the fixed-rate modality, the rate to be applied to the operation corresponds to the Euribor (2) swap rate for the period corresponding to the term of the operation rounded up to the next higher multiple year, plus a spread referred to in the table below.
• In the variable rate modality, the rate to be applied to the operation corresponds to the Euribor rate at 1, 3, 6 or 12 months, plus a spread resulting from the time of the maturity of the loan. Maximum applicable spread:
  • Up to 1 year - 100 basis points
  • From 1 to 3 years - 125 basis points
  • From 3 to 6 years - 150 basis points

Interest will be fully paid by the beneficiary and will be settled monthly or at the deferred time.

Banking fees:

• Management fee: up to 0.25% per year.
• The remaining fees will be exempted, with all costs and charges associated with taking out the loan operations being borne by customers, namely taxes or fees and other similar expenses. In fixed-rate financing, the bank may pass on to customers the costs inherent in the reversal from fixed to variable rate, or when early settlement occurs (partial or total).

MGS (Mutual Guarantee Society) coverage:

• Up to 90% for sole proprietorships, Micro and Small Businesses and up to 80% for Medium Companies, Small Mid Cap and Mid Cap.

Mutual counter-guarantee in favor of MGSs:

• 100%

MGS fees:

• Paid by the beneficiary companies, with a single charge at the end of the loan's maturity, according to the maturity of the loan and the type of company:
• Micro, Small, and Medium-sized Businesses:
  • Up to 1 year - 25 basis points
  • From 1 to 3 years - 50 basis points
  • From 3 to 6 years - 100 basis points
• Small Mid Cap and Mid Cap:
  • Up to 1 year - 30 basis points
  • From 1 to 3 years - 80 basis points
  • From 3 to 4 years - 175 basis points

Aid Scheme:

• The lines of support provided for in this protocol are implemented under the European Commission's authorization decision, communicated on 22-03-2020, under notification file SA.56755(2020/N) and comply with the provisions of Commission Communication C (2020) 1863 final on the "Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak".

Exemption from accession to Mutualism

• In view of the exceptional circumstances resulting from the outbreak of the novel Coronavirus (COVID-19), the guarantees are granted by MGSs to the beneficiaries of this support line without them having to be a shareholder of the respective MGS. In this sense, under no circumstances is it required that the customer purchase shares prior to taking out the operation, nor formalize any share pledge, even if the customer is already a shareholder of said MGS.

(2) The Euribor swap rate will be that published on the Intercontinental Exchange (ICE) page, at www.theice.com/marketdata/reports/180, reported at 11.00 am on the second business day prior to the date of taking out the operation.