Everything you need to know about PT2030 Development Financing - Guarantees

Is your company in "Other Territories"? Yunit explains everything about the new Fomento PT2030 Financing Line and how to obtain 20% repayable support at zero interest. Learn how to maximise your project.

The Portugal 2030 support ecosystem is constantly evolving, and the latest news is the "Fomento PT2030 - Guarantees" Financing Line. Announced with an allocation of one billion euros, this line is not just another support, but rather a strategic financial instrument designed to respond to a very specific need of the business fabric.

Many managers and entrepreneurs ask themselves: what is, in practice, the Fomento PT2030 Financing Line? Is my company eligible? How does it articulate with non-repayable incentives?

At Yunit, we have followed Portugal 2030 since its genesis. In this complete guide, we will demystify this new mechanism so that you can make the best strategic decisions for your investment.

What is the Fomento PT2030 Financing Line?

The Fomento PT2030 Financing Line is a strategic financial instrument, managed by Banco Português de Fomento (BPF), designed to support companies with investment projects approved under Portugal 2030. Its main objective is to capitalise companies located specifically in municipalities classified as “Other Territories”, according to the National Programme for Territorial Cohesion. This mechanism is not a non-repayable subsidy, but rather a repayable financing component that articulates with incentives to ensure a competitive and balanced level of support throughout the national territory.

The creation of this line aims to reinforce the economic viability of investment projects without increasing the non-repayable component, promoting a more efficient leverage of capital. By reducing financial charges for companies and decreasing their exposure to commercial banking risk, the instrument stimulates the realisation of innovation, energy transition, and competitiveness projects. It is a public policy measure that seeks to ensure territorial cohesion, while ensuring attractive financing conditions for the business fabric located outside low-density areas.

Who is it for? The focus on "Other Territories"

Here lies the most important point of this line: its geographical eligibility. The Fomento PT2030 Financing Line is intended for Micro, Small, Medium, and Large Enterprises (provided they are eligible) whose investment projects are located in municipalities that are not classified as Low-Density Territories in the National Programme for Territorial Cohesion (PNCT)..

Essentially, these are the territories that do not fit the definition of "Low-Density Territories", which now benefit from higher non-repayable incentive rates. This line emerges precisely to balance the support map.

How does the Fomento PT2030 Financing Line work? The combined financing model

This is where financial strategy becomes crucial. To compensate for a reduction in the non-repayable support rate to 30% in these "Other Territories", the new Fomento PT2030 Financing Line comes in as a complement.

Let's look at the model for a project with a maximum support rate of 50%:

 This means that, for an investment of €1,000,000, your company can obtain €300,000 as a non-repayable grant and an additional financing of €200,000 which will have to be repaid, but without any interest cost.

See the financing structure in detail with this new model in the table. 

In practice, the line replaces a significant portion of the traditional bank loan – in this example, 20% of the total investment amount – with financing of equal value, but with the crucial competitive advantage of being charge-free.

The direct implications for the company are:

1. Substantial Reduction of Financial Costs: By avoiding interest payments on €200,000, the company decreases the total cost of its debt service, which increases the profitability and safety margin of the project.

2. Lower Exposure to Commercial Banking: The need for financing from banks is reduced from 50% to 30% of the project value. This not only facilitates the negotiation and approval of the remaining loan but also decreases the company's dependence on financial market conditions and risk.

3. Increased Project Viability: By decreasing financial charges, projects that might be considered marginally viable become more robust and attractive, encouraging the investment decision by entrepreneurs.

In short, the Fomento 2030 Financing Line acts as a powerful catalyst, making investment projects more accessible and sustainable. Its introduction represents an intelligent optimisation of the financing architecture, leveraging public funds (PT2030 incentive and BPF guarantee) to mobilise private capital more efficiently and less onerously, thus reinforcing the competitiveness of the business fabric.

Which projects are eligible? Covered Incentive Systems

This measure covers most business investment projects, including SMEs and Large Enterprises, approved under the following Incentive Systems:

• Business Competitiveness Incentive System (SICE): Productive Innovation, Qualification and Internationalisation.
• Research and Development Incentive System (SIID): Business R&D and R&D&I
• Territorial Base Incentive System (SIBT): e.g.: Development projects in specific territories.
• Climate Transition and Energy Incentive System (SITCE):  Decarbonisation and Energy Efficiency.

Conditions and limits to retain from the Fomento PT2030 Financing Line

For rigorous financial planning, it is fundamental to know the conditions:

• Global Line Amount: 1,000 million euros.
• Limit per Project: Maximum financing of 1.5 million euros.
• Limit per Company: Maximum accumulated of 2.25 million euros until 2029.
• Aid Regime: The financing component (the 20%) falls under the de minimis aid regime. This means that the amount counts towards the ceiling of support a company can receive under this rule in a period of three fiscal years.

Yunit helps navigate complexity and maximise your support

The introduction of the Fomento PT2030 Financing Line is excellent news, but it adds a layer of strategic complexity to the preparation of an application. The articulation between the non-repayable incentive, repayable financing, and de minimis rules requires detailed financial analysis and deep knowledge of regulations.

An error in framing can mean the loss of a valuable opportunity or, worse, the approval of a project with a less favourable capital structure.

At Yunit, our team of senior consultants is prepared to analyse the framing of your project, optimise the financing structure, and ensure that your application is submitted with maximum rigour and potential for success.

Don't let the complexity of support be an obstacle to your company's growth. Talk to us and ensure your project makes the most of every euro available in Portugal 2030.