MEASURE FACT SHEET

Supports projects with a minimum eligible investment of €15.000 and a maximum eligible investment of €150.000, aimed at the establishment or development of micro or small enterprises, through the reinforcement of their technical and technological capacity and the modernisation of their structures.

Goals

• Contributing to the development of the region where such enterprises are located;

• Fostering competitiveness gains, namely through the reinforcement of the technical and technological capacities and the modernisation of physical structures.

Beneficiaries

Micro and small enterprises (Commission Recommendation 2003/361/EC).

Activity Sectors

Industry, Building Industry, Commerce, Tourism, Services and Transport, with the following EAC:

Activity Sectors	Eligible EAC
Industry	10 to 37
Building Industry	45
Commerce	50 to 52 (except 5231)
Tourism	551, 552, 553, 554, 633, 711, 9232, 9233, 9234, 9261, 9262, 9272, 93041 and 93042
Services	72, 73, 7420, 7430, 9211, 01410, 02012 and 02020
Transport	602, 622, 631, 632 and 634

Investments submitted to Community restrictions under the framework of the Common Agricultural Policy (CAP), as well as investments able to receive EAGGF support under the protocol with the AGRO Programme , are excluded.

On the basis of a duly reasoned proposal by PRIME Executive Director, and depending on their strategic dimension, the Minister for Economic Affairs and Innovation may consider granting support to projects included in other activity sectors.

Eligibility Requirements

For the Promoter

• To fulfil the criteria mentioned in the definition of small enterprise (Commission Recommendation 2003/361/EC);
• To be legally established;
• To fulfil the legal conditions required to carry out business activities, namely having been granted all the necessary licenses;
• To have fulfilled all obligations related to taxes and social security, and towards the paying agency responsible for the incentive;
• To have an organised accounting system, according to the National Accounting Plan;
• To have a balanced economic and financial situation;
• To have concluded any project formerly supported by SIPIE;
• To appoint a project manager, who is to be in charge of the project up to its conclusion;
• To assume the commitment of allocating the investment co-financed by SIPIE to the relevant activity for a minimum period of five years, starting from the date of investment’s end. 
• To maintain the geographical location defined in the project for a minimum period of five years, starting from the date of investment’s end.

Each promoter may submit only one project per selection stage.

For the Project

• When applicable, to have been granted approval for the building plan or for the specification of patent of the investment;
• When applicable, to have been classified as a tourism attraction;
• To represent a minimum eligible investment of 15 thousand euro, and a maximum eligible investment of 150 thousand euro;
• To exclude all the expenses incurred into before the application date, with the exception of advances related to the project, up to 50% of the purchasing price of each item, and of expenses related to studies and projects carried out less than one year before;
• To foresee a maximum implementation period of 2 years starting from the date of investment´s beginning;
• To prove the availability of suitable financing providers;
• To be adequately financed by equity capital (Annex B of Implementing Rules).

Eligible Expenses

Investment essential to the activity:

• Construction of buildings, up to the limit of 10% of eligible investment, when directly related to activities essential to the business activity development;
• Construction of other facilities or rehabilitation works in the existing ones, when directly related to the business activity development, or when intended to improve safety and health conditions;
• Purchasing of machines and equipment for the production and management areas;
• Transport, insurance, assembling and disassembling of eligible equipment;
• Expenses related to the work of certified accountants or certified public accountants, required for the monitoring and control of projects, up to the limit of €1.250;
• Expenses related to the preparation of the application up to the limit of €500.

• Purchasing of machines and equipment for the areas of quality, health and safety, environment, laboratory control and design;
• Management computer systems (hardware/software), introduction of information and communication technologies, and upgrading of logistics, sales and marketing;
• Environmental protection equipment, namely for waste-water treatment, atmospheric toxic emissions, waste disposal, noise reduction, and introduction of eco-efficient technologies in view of a sustainable use of natural resources;
• Planning and monitoring systems for the areas of health and safety and environment;
• Purchasing of patents, licenses and trademarks;
• Other building or rehabilitation and conversion works in facilities intended for recreational tourism projects (autonomous or inserted in existing tourism facilities), nature tourism and beach bars' projects;
• Studies, diagnosis and audits, architectural and engineering projects associated to the investment project up to 2.500 euro;
• Management technical assistance for production organization and management, and for technological upgrading, up to the limit of 15% of the eligible investment in fixed capital;
• Expenses related to the development and certification of quality, environment and safety management systems, including specific technical assistance and rehabilitation and conversion works directly required;
• Rehabilitation of motor vehicles directly linked to the essential functions of business activity. Overcosts related to the acquisition of motor vehicles equipped with devices allowing for the reduction of pollutant gases and particles to levels still to be legally regulated, for the part corresponding to the additional cost of such devices and their fitting, within the scope of transport projects deemed as eligible for support.

Non-Eligible Expenses

• Land-property acquisition, except when bought in view of exploiting mineral deposits, hydro-mineral and geo-thermal resources, spring and mineral waters;
• Acquisition of buildings;
• Subletting rights and space using rights;
• Furniture and other equipment (except for Tourism and Trade, when linked to the essential functions of the activity);
• Motor vehicles;
• Second-hand goods purchasing;
• Enterprise internal expenses;
• Interests during construction;
• Working capital;
• Advertising;
• Cost of bank guarantees.

Incentive

Nature and Rates

Non-refundable incentive, corresponding to 30% of the project's eligible expenses.

Surcharges

• 5 p.p. in the case of projects located in the communes identified as PRASD (Ministerial Order No. 7515/2004, of 15 April);
• according to the type of promoter, one of the following surcharges may apply (Joint Ministerial Order No. 334/2004, of 3 May):
  • 5 p.p. for young entrepreneurs;
  • 5 p.p. in the case of workers coming from an enterprise under restructuring.
    

Limits

Since this scheme falls within the scope of the de minimis aid rules, incentives cannot exceed € 100 000 per promoter, over a three year period, starting from the approval date of the first incentive, except in the case of the transport sector.

ITP - Portuguese Tourism Board (for Tourism sector projects);

IAPMEI - Institute for Support to Small and Medium-Size Enterprises and Investment (for projects within the other sectors)

Geographic Area

Mainland Portugal. 

The information herein does not dispense with consulting the legislation.

Updated at November 2006.