Support for Business Capitalization - PT2030 Funding Line Guarantees

Access to European funds, such as Portugal 2030, represents a unique opportunity for companies to innovate and grow. However, a common challenge persists: how to support the equity component required in each project? The answer comes through a new and powerful instrument managed by the Banco Português de Fomento (BPF), designed to resolve this financial "bottleneck" and strengthen the capital structure of Portugal 2030 projects presented by national SMEs. 

What is the New Guarantee Line for Equity Increase?

Integrated into the Banco Português de Fomento (BPF) Guarantee Line, with a global budget of €1,000 million, this new solution allows companies to finance their share of investment in approved projects without resorting exclusively to a traditional bank loan. The goal is clear: to facilitate the capitalisation of companies, allowing the equity effort component to be financed under very favourable conditions, thus opening the doors of European funds to more SMEs.

How Does It Work in Practice? 

Let us suppose your company has a SICE Productive Innovation project approved in the Beiras and Serra da Estrela Region with a non-repayable support rate (grant) of 60%. The remaining 40% would have to be secured by your company either through equity or a combination of equity and a bank financing line.

This is where this mechanism comes in. The new line allows you to finance up to 75% of this 40% of investment not financed by Portugal 2030. In practice, the BPF covers the guarantee, allowing banks to provide financing under exceptional conditions: a term of 8 years with a 2-year grace period. This means more financial breathing room and less risk.

Let us observe this comparative model for an investment of €1,000,000 (one million euros).

 *Interest-free Bank Financing repayable over 8 years with a 2-year grace period. 

What are the Advantages of This Support for Your SME?

• Interest-free Bank Financing: Reduces exposure to banks and the costs associated with interest and commissions.
• Immediate Improvement of Financial Ratios: A better-capitalised company is a stronger company, with greater bargaining power and better access to future credit.
• More Robust and Resilient Capital Structure: Prepares your project for various investment cycles and to face unexpected market challenges.

Who Is It For and How to Prepare?

This line was designed specifically for Small and Medium-sized Enterprises (SMEs) that have investment projects approved or in the approval phase and need to strengthen their capital structure to cover the non-incentivised component.

Although details on eligibility criteria and application phases are not yet public, the time to act is now. Preparation is fundamental. Companies must start analysing their balance sheets and structuring their investment plans now to be at the forefront when applications open.

Maximise the return on your investment project. Schedule your meeting now and discover the best financing sources for your company.