Sustainable Tourism Support Line | Applications open

Give Your Business More Green Energy – Banco Português de Fomento has announced the launch of the New Sustainable Tourism Support Line to assist Portuguese companies in transitioning to a more sustainable and carbon-neutral future. Applications are now open.

This line was created to support companies in the Portuguese tourism sector that aim to implement projects aligned with energy transition and carbon neutrality. With an allocation of 50 million euros, this line aims to facilitate access to credit for investments in priority areas such as water management, energy, sustainable mobility, waste, circular economy, and biodiversity.

// Beneficiaries

Eligible companies include Micro, Small and Medium Enterprises (SMEs), Small Mid Caps, Mid Caps, and Large Companies located within national territory and whose main activity is:

• 49392 | Other various passenger land transport, n.e. (1)
• 551 | Hotel establishments
• 55201 | Furnished accommodation for tourists
• 55202 | Rural tourism
• 55204 | Other short-stay accommodation
• 55300 | Campsites and caravan parks
• 561 | Restaurants
• 563 | Drinking establishments
• 771 | Car rental
• 79 | Travel agencies, tour operators, other reservation services
• 82300 | Organisation of fairs, congresses, and other similar events
• 93110 | Management of sports facilities
• 93192 | Other sports activities, n.e. (2)
• 93210 | Theme park activities (2)
• 93292 | Marina activities (2)
• 93293 | Organisation of entertainment activities (2)
• 93294 | Other amusement and recreational activities, n.e. (2)

In the case of CAE 49392 (1), companies must demonstrate that at least 50% of the company's turnover in 2019 was associated with tourist transportation. For activities performed by companies with CAE codes beginning with division 93 (2), eligibility applies only if these activities are carried out by tourism entertainment companies.

// Eligibility Conditions

The line establishes strict eligibility criteria for financed projects. These must include, at minimum, investments in water or energy management and aim to promote concrete decarbonisation actions, such as reducing greenhouse gas emissions and incorporating renewable energy sources. However, operations such as purchasing properties or vehicles not exclusively intended for productive activities are excluded.

To benefit from this support, companies must meet the following requirements:

• at least one year of positive equity from the 2021 financial year onwards;
• be participants in the Turismo 360º Programme;
• demonstrate economic and financial viability;
• have organised accounting and a balanced economic-financial situation;
• have no unresolved issues with banks, the Mutual Guarantee System, or Turismo de Portugal

// Financing Conditions

The maximum financing amount per company is limited to 750 thousand euros, and the line’s initial validity period is 12 months, which may be extended if the line's total amount is not fully utilised.

In terms of support, there is a guarantee of up to 80% of the financing amount and a counter-guarantee of 80% by the Mutual Counter-Guarantee Fund (FCGM). With a repayment term of up to 180 months and grace periods of up to 48 months, this line offers flexible payment conditions, with monthly, quarterly, semi-annual, or annual instalments.

As an additional incentive, part of the financing may be converted into a non-refundable grant of up to 20% of the amount, or up to 30% for operations related to drought mitigation in NUT II Algarve, subject to performance indicators such as a 15% reduction in water consumption or a 30% reduction in primary energy consumption. Conversion will depend on technical and sustainability reports verifying that the operation’s objectives have been met.

Interested companies must submit their application to BPF, which will verify eligibility and assess the project's alignment with the established criteria. This new support line serves as a crucial incentive for the tourism sector in Portugal, promoting a transition to more sustainable practices and resilience to environmental challenges. Schedule your meeting now and start preparing your project!

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Last updated: 7 November 2024