"APOIAR" Program

Legal Alert no. 138

On November 20, 2020, it was published on “Diário da República” the Decree of the Council of Ministers no. 101/2020 which approved a first set of measures to support the treasury of micro and small companies which operate in sectors particularly affected by the lockdown measures, ensuring and preserving their market liquidity and the continuity of their economic activity during and after the pandemic outbreak.

The Decree no. 271-A/2020, of November 24, creates and rules the Liquidity Incentive System, also referred to as “APOIAR” Program, which is financed by Thematic Operational Program Competitiveness and Internationalization (COMPETE 2020).
The “APOIAR” Program includes measures “APOIAR.PT” and measures “APOIAR RESTAURAÇÃO”.

- APOIAR.PT
Micro and small companies that meet the following access criteria and conditions may beneficiate from APOIAR.PT Program:

•  Be legally incorporated on January 1, 2020;
• Be engaged in main economic activity foreseen in the list of “CAE” (Company’s Activity Code) included as Annex A to the Decree, and being operating;
• Have an organized accounting, in accordance with the applicable legislation;
• Not having been subject to insolvency proceedings, under the terms of the Portuguese Insolvency and Corporate Recovery Code, and not having benefited from emergency or restructuring aids;
• Have a positive equity capital as of December 31, 2019, except for companies that started their activity after January 1, 2019;
• Have Electronic Certification that proves the status of micro or small company;
•  Declare a decrease in the invoicing reported to the Tax Authority in the “e-Fatura” system of, at least, 25% in the first three quarters of 2020,compared to the same period in 2019 or, in the case of companies that started their activity in 2019, declare a decrease in the average monthly billing reported to the Tax Authority in the “e-Fatura” system of, at least, 25% in the first three quarters of 2020, compared to the monthly average of the activity period elapsed until February 29, 2020, considering only the completed months;
• Submit a declaration signed by the certified accountant responsible for the company's accounting in which the decrease recorded in the company's invoicing is stated, in the first three quarters of 2020, compared to the same period in 2019 or, in the case of companies that started their activity in 2019, regarding to what results from the monthly average calculated as per the previous paragraph to the previous period of 9 months;
• Have its situation regularized with regard to replacements, within the framework of European Structural and Investment Funds financing;
• Have its tax and contributory situation regularized before the Tax Authority and the Social Security.

The aids covered by the “APOIAR.PT” Program are granted in the form of a non-refundable grant.
The financing rate is 20% of the amount of the decrease in the company’s invoicing, with the following maximum limits:

- € 7,500.00 for micro companies, which is increased to € 11,250.00 for micro companies whose main activity under “CAE” 56302, 56304, 56305, 93210 and 93294 is administratively closed;
- € 40,000.00 for small companies, which is increased to € 60,000.00 for small companies whose main activity under “CAE” 56302, 56304, 56305, 93210 and 93294 is administratively closed.

- APOIAR RESTAURAÇÃO

SME that meet the following access criteria and conditions may beneficiate from APOIAR RESTAURAÇÃO Program:

• Be legally incorporated on March 1, 2020;
• Be engaged in main economic activity foreseen in “CAE” 56: Restaurants and similar and being operating;
• Have its registered head office in one of the national mainland territory municipalities covered by the suspension of activities;
• Have been covered by the suspension of activities in the relevant period for the calculation and allocation of the aid;
• Have an organized accounting, in accordance with the applicable legislation;
• Not having been subject to insolvency proceedings, under the terms of the Portuguese Insolvency and Corporate Recovery Code, and not having benefited from emergency or restructuring aids;
• Have a positive equity capital as of December 31, 2019, except for companies that started their activity after January 1, 2019;
• In the case of a medium company, not being a company in difficulty;
• Have Electronic Certification that proves the status of SME;
• Declare a decrease in the average daily invoicing reported to the Tax Authority in the “e-Fatura” system in the days when the suspension of activities is in force, compared to the average daily invoicing registered on weekends between January 1, 2020 and October 31, 2020 or, in the case of companies incorporated in 2020, in the period of activity elapsed until October 31, 2020;
• Submit a declaration signed by the certified accountant responsible for the company's accounting in which the decrease recorded in the company's invoicing is stated, in the days that the suspension of activity was in force;
• Have its situation regularized with regard to replacements, within the framework of European Structural and Investment Funds financing;
• Have its tax and contributory situation regularized before the Tax Authority and the Social Security.
  The aids covered by the “APOIAR RESTAURAÇÃO” Program are granted in the form of a non-refundable grant.
  The financing rate is 20% of the amount of the decrease in the company’s invoicing.
  During the period of granting of the aids under “APOIAR.PT” and “APOIAR RESTAURAÇÃO” programs, counting from the submission of the application and within 60 working days following the submission of the request for the final payment, the beneficiaries are prevented from:
• Distributing profits and dividends, in any form, namely as a withdrawal on account;
• Terminating employment contracts under the terms of collective dismissal, dismissal as a result of the termination of the job or dismissal for inadequacy;
• Ceasing the activity.

The aids granted under “APOIAR.PT” and “APOIAR RESTAURAÇÃO” can be combined with each other and with other incentives and state support.
The Decree no. 271-A/2020, of November 24, entered into force on November 25, 2020.

To access the full text of Decree no. 271-A/2020, of November 24, please click here.

On December 30, 2020, it was published on “Diário da República” the Decree of the Council of Ministers no. 114/2020, which establishes the extension of the “APOIAR” Program to medium-sized companies and to individual entrepreneurs under the simplified regime.

The Decree of the Council of Ministers no. 114/2020, entered into force on December 10, 2020.

To access the full text of Decree of the Council of Ministers no. 114/2020, please click here.