MEASURE FACT SHEET

Supports projects intended to revitalise and to strengthen business activities within the commerce sector and some activities within the services sector, and to re-qualify the surrounding urban public space. This scheme also covers the promotion of the corresponding global project, whenever integrated in delimited areas of urban centres, highly commercial, well located, multifunctional, with a high level of economic, social and business estate development.

Goals 

• To modernise the business units within limited urban areas;
• To revitalise the surrounding public space;
• To foster commercial promotional and liven-up actions.

Beneficiaries

• Micro-enterprises and SMEs (Commission Recommendation 2003/361/EC);
• Commerce Associative Structures;
• Municipalities;
• Co-ordinating and supervising units (Specific Rules in the end of this measure fact-sheet).

Activity Sectors

Commerce, Tourism and Services in the following EAC - Economic Activities Classification:

Eligible Expenses

Enterprises

• Works on the façade of commercial establishments, and works for freshening up or changing the layout or re-sizing shop interiors, including for improving health and safety conditions, up to the limit of 50% the total eligible investment;
• Purchase or change of shades and neon signs;
• Purchasing of exhibition equipment with a view to improve the image and liven up the shops, as well as to an adequate product identification, location and display;
• Purchasing of machinery and equipment (including software/hardware), introduction of information and communication technologies, investment in after-sales services and other services necessary for business development;
• Expenses with marketing activities at the point of sale, including shop-window layout;
• Preparation of the application file, studies, analysis, and architectural, engineering and design projects up to the limit of 6% of total eligible investment, and a limit of € 6.000;
• Purchase of trademarks, patents and license;
• Intervention of certified accountants and certified public accountants, up to a limit of € 1.250;
• VAT may be considered eligible whenever the promoter is not the taxable person or cannot claim the right to deduct VAT.

Associative Organizations

• Global studies costs;
• Costs related to commercial promotion and recreational actions:
  •  Bags, stickers and gifts;
  • Leaflets and other supports for presentation and dissemination of the global plan for communication and/or commercial promotion;
  • Advertising in newspapers, magazines, radio, outdoors, posters, mailings, leaflets and brochures;
  • Preparation of itineraries and small leaflets or catalogues;
  • Expenses with equipment leasing for special occasions and rental of tourist trains;
  • Contracting of entertainers;
  • Contracting of show case designers for support to entrepreneurs;
  • Organisation and carrying out of events, and namely:
    • Fashion shows involving a direct participation of entrepreneurs from the intervention area;
    • Gastronomic contests/exhibitions, provided they occur within the intervention area;
    • Other commercial promotion actions integrated in celebrations, exhibitions, festivals, thematic exhibitions, provided they occur simultaneously and contribute to commercial promotion;
  • Contest organisation;
  • Design and dissemination of image, logo and/or mascot design;
  • Design and/or organisation, management and follow-up of initiatives included in the project;
  • Intervention of chartered accountants or certified public accountants;

• Vocational training costs related to human resources from the enterprises within the intervention area.

Municipal Councils

• Road paving, except for the corresponding infrastructures, save for the storm overflow networks, up to an eligible maximum amount of 10% of total works cost;
• Greeneries, including the overhead sprinkling system, up to an eligible maximum amount of 10% of total works cost;
• Ornamental lakes and the corresponding infrastructure, up to 10% of the civil engineering works;
• Street furniture and support equipment; 
• Signs and signals;
• Public lightning, including scenic lightning and excluding the corresponding infrastructure, save jack boxes;
• Paving of parking areas on the surface, excluding the corresponding infrastructures;
• Intangible assets of projects implementing tangible projects.

Non-Eligible Expenses

Enterprises

• Facilities construction or acquisition;
• Land-property;
• Subletting rights and space using rights;
• Used equipments and other goods;
• Motor vehicles, trailers and semi-trailers;
• Furniture and other equipments not directly related to the activity's operation;
• Internal enterprise costs;
• Working capital.

Associative Organizations

• Costs related to commercial promotion and recreational actions, namely:
  • Market studies;
  • Expenses with contest juries;
  • Contest awards;
  • Fireworks;
  • Laser shows;
  • Stage shows/contracting of performers for stage shows;
  • Video and photo reportages to prove the organisation of the event;
  • Expenses with festival lighting;
  • Acquisition of second hand goods;
  • Acquisition of equipment, except when unmistakably proven that this option is more advantageous than leasing;
  • Accommodation expenses;
  • Travelling and meals expenses; exceptionally, these expenses may be considered when non-profit organisations are contracted, provided they do not receive a fee.

Incentive

Non-refundable incentive.

Enterprises

Incentive granted as a result of “Project Quality” (PQ):

• Whenever PQ is high: incentive rate of 45% of eligible expenses;
• Whenever PQ is medium: incentive of 35% of eligible expenses.

The incentive to be granted may not exceed € 100.000 per beneficiary enterprise, during the three years following the first incentive approval date. This amount includes all incentives granted within the framework of other incentive schemes, according to the de minimis aid regime.

Associative Organizations

• Global study: incentive rate equal to 75%, up to the limit of € 37.500;
• Promotional project: incentive rate equal to 75%, up to the limit of € 250.000. In this case, the eligible investment is limited to 7,5% of the total eligible investment amount for business projects within the corresponding intervention area. This limit may be reduced by 30% if the enterprise participation rate does not reach 50%.

Municipal Councils

• Intangible investment: incentive rate amounting to 75% of the eligible intangible investment, not exceeding 35% of the total eligible investment (tangible and intangible);
• Tangible investment: incentive rate amounting to 50% of the eligible tangible investment;
• Commercial area eligible investment shall be limited to 20% of the total eligible investment of business projects within the corresponding intervention area. Such limit may be reduced by 30% if the enterprise participation rate does not reach 50%.

Submission of Applications

Applications shall be sent via the Internet, through an electronic form, or delivered at one of the reception desks of the Ministry of Economic Affairs and Innovation.

The promoters shall submit individual applications during the period established by the Specific Rules of the relevant global project.

The submission of applications to URBCOM is now suspended (Ministerial Order no. 19624-B/2006, of 25 September).

Bodies  in Charge

Coordinating Body

IAPMEI – Institute for Support to Small and Medium-Size Enterprises

Specialised Body

DGE – Enterprise Directorate General (for Business Associations and Municipalities projects)

Geographical Area

Mainland Portugal and the Autonomous Regions.

Beneficiaries

Coordination and Follow-up Units (CFU) of URBCOM projects that should assume the legal form of a private non-profit association. It should necessarily have the participation of the Associative Structure and of the City Council, in their quality of global promoters.

Eligibility Requirements

For the Promoter

• To be legally established;

• To have an organisational structure and qualified human resources appropriated for the activities to be developed, including necessarily an urban centre manager;

• To have fulfilled all obligations related to taxes and social the security, and towards the incentive paying agencies;

• To have an organised accounting system, according to the legislation in force;

• To have the financial means required for financing its activity and the implementation of the project;

• To own suitable facilities, preferably within the intervention area, as a means for a better operation;

• To fulfil all the access requirements set out in the regulations governing ESF support, whenever there are investments in vocational training.

For the Project

• To fit within a specific intervention strategy;

• To present an action plan, as well as a budget and a financing plan;

• To ensure the project's adequacy to the specific intervention strategy and action plan, including the vocational training component;

• To ensure the assignment of qualified human resources adapted to the project, including the urban centre manager;

• Not to include expenses made before the application date, except for expenses related to the preparation of the specific intervention strategy, if disbursed less than one year before. The Associative Structure or the City Council may submit these, whenever the UAC is not legally established;

• Not to exceed the maximum implementation period of 2 years after the notification of the incentive's granting;

• To prove to have guaranteed the project's financing sources through a duly justified financing plan;

• To terminate any other project previously approved under the current incentive scheme.

Eligible Expenses

• External technical assistance related to the preparation of the specific intervention strategy, up to the limit of 6.500 euro;

• Monthly payment, or after any other fixed and even period, plus Holiday allowance and Christmas bonus pertaining to the contract to be signed with all personnel directly assigned to the project, and limited by the UAC to a ceiling of:

o 1 Urban Centre Manager – six national minimum wages per month (Senior Manager – Manager having a training course in urban centre management recognised by DGE) or five national minimum wages per month (Junior Manager – Manager having attended an awareness-raising action within the field of urban centre management);

o 1 Technical Executive – four national minimum wages per month;

o 1 Administrative Assistant – two national minimum wages per month;

• Costs related to vocational training actions to be attended by the urban centre manager and the technical executive, according to the legislation governing ESF support;

• Acquisition of computer equipment (hardware/software) and communications equipment vital for the activity development, according to the specific intervention strategy and the action plan, up to the limit of 6.000 euro;

• Contracting of services, namely as regards health and safety and consumer support, and other expenses with actions promoting and ensuring the individuality and the attractiveness of the intervention area, taking into account the size of this area and up to a limit of 30 000 euro. Expenses mentioned in Article 21 b) of Order in Council No. 188/2004, of 26 February, are excluded;

• For global projects, costs of commercial promotion and recreational activities within the intervention area, concluded on the date of entry into force of the Order in Council No. 188/2004, of 26 February, or projects that the application deadline being finished had not been submitted by the Associative Structure due to the size of the intervention area up to a limit of 60 000 euro.

Non-Eligible Expenses

• Acquisition or leasing of facilities;

• Construction works;

• Acquisition of furniture;

• Motor vehicles and other transport material;

• Acquisition of second-hang equipment or other second-hand goods.

Incentive

Nature and rates

Non-refundable incentive.

Limits

• Incentive rate of 50% of eligible expenses related to the acquisition of computer equipment (hardware/software) and communications equipment vital for activity development, according to the specific intervention strategy and the action plan;

•  Incentive rate of 75% for all other eligible expenses.

The incentive to be granted and pertaining to hiring of human resources shall be applicable to expenses with monthly salaries for a 24-month period.

Selection criteria

Projects shall be graded according to their Economic Value (EV), and in the event of parity according to the chronological order of application dates.

Economic value (EV) shall be calculated as follows:

EV = 0,50C1 + 0,25C2 + 0,25C3,

in which:

C1 – Evaluation of the profile of the urban centre manager;

C2 – Evaluation of the quality of the specific intervention strategy;

C3 – Adequacy of the project to the specific intervention strategy.

The points scored according to C1, C2 and C3 criteria shall be given under the following terms:

• Weak – 0 points;

• Medium – 40 points;

• Strong – 70 points;

• Very strong – 100 points.

Projects with an economic value lesser than or equal to 50 points are not eligible.

Submission of Applications

Applications shall be addressed to IAPMEI - Institute for Support to Small and Medium-Size Enterprises and Investment, together with all the documents attesting the fulfilment of the eligibility requirements.

The submission of applications is done by stages, which time periods and budgetary allocations are established by an Order of the Minister for Economic Affairs and Innovation. Other specific conditions may yet be established.

At the moment there are no application stages open for CFU.

This information does not dispense with consulting the legislation.

Updated on November 2006.