Support line for Midsize Companies, Small Mid Caps, Mid Caps

As part of the support provided by the State for companies affected by the COVID-19 pandemic, a new support line was launched for Midsize Companies, Small Mid Caps, Mid Caps.

• Line total: €400 million.

Medium-sized companies, as defined in European Commission Recommendation 2003/361/EC, certified by IAPMEI's Electronic Declaration, as well as Small Mid Caps and Mid Caps, as defined in Decree-Law 81/2017, of 30 June, operating in Portugal, which carry out activities included in the list of EACs published by the Line's Managing Entity

Classification of companies:

• Midsize Companies (up to 250 permanent employees, Turnover equal to or less than 50 Million Euros or Total Balance equal to or less than 43 Million Euros); 
• Small Mid Caps (between 250 and 499 employees);
• Mid Caps (between 500 and 2,999 employees).

Specific line "COVID 19 - Support for Midsize Companies, Small Mid Caps, Mid Caps"

Maximum amount per company:

• Midsize companies: €1,500,00;
• Small Mid Caps and Mid Caps: €2,000,000.

• Operation term: up to 6 years.
  
• Interest-only term: up to 18 months, after taking out the operation.
• Principal repayment: Equal, successive and deferred installments on a monthly basis.
• Usage term: Up to 30 days, after date it is taken out.

Interest rate (maximum):

• Variable rate: the rate to be applied to the operation corresponds to the Euribor (1) swap rate for the period corresponding to the term of the operation rounded up to the next higher multiple year, plus a maximum spread of 1.50%;
• In the fixed rate modality, the rate to be applied to the operation corresponds to the Euribor rate at 1, 3, 6 or 12 months, plus a maximum spread of 1.50%.

Interest frequency: Interest will be fully paid by the beneficiary and will be settled monthly or at the deferred time##44441## ##44441## Mutual Guarantee Fee: A guarantee fee will be applied by the Mutual Guarantee System to be paid annually and in arrears to the Beneficiaries under the following terms:

Midsize Company:

• Up to 1 year of maturity: 25 basis points;
• From 1 to 3 years of maturity: 50 basis points;
• From 3 to 6 years of maturity: 100 basis points.

Small and Mid Caps:

• Up to 1 year of maturity: 30 basis points;
• From 1 to 3 years of maturity: 80 basis points;
• From 3 to 6 years of maturity: 175 basis points.

The guarantee fee is calculated monthly on the value of the guaranteed and outstanding balances at any time, and, for loans over 1 year, the percentage to be applied will be increased gradually over the term of the guarantee, whereby the terms and limits in the table above will apply to each term of the loan.

Fees and Charges:

• Banks will be able to charge the customer an annual management/monitoring fee of up to 0.25% on the amount of financing due;
• In all respects, the operations that come under this support line will be exempt from other fees and rates generally charged by the bank, as well as other similar fees imposed by the Mutual Guarantee System, without prejudice to the fact that all costs and fees associated with contracting credit operations, specifically those associated with taxes, fees and other similar expenses, will be assumed by the customer;
• In fixed interest rate financing, the Bank may pass on to the customer the costs incurred in reversing the fixed rate, when there is total or partial early settlement or when the customer requests the change from fixed to variable rate.

(1) The Euribor swap rate corresponds to that published on the Intercontinental Exchange (ICE) website at www.theice.com/marketdata/reports/180, reported at the fixing time of 11am on the 2nd working day prior to the contract date.

This information does not constitute a commercial proposal and does not exempt you from consulting the official documentation, published at www.spgm.pt.