Decree-Law no. 20-G/2020, of May 14

 

t a time when, without neglecting the priority of combating the epidemiological situation caused by the SARS-CoV-2 coronavirus and the COVID-19 disease, it is essential for the country to gradually return to economic and social activities, the Government, in view of this need, creates the "Adapt Program", through Decree-Law No. 20-G/2020.

 

The Program approved by the Government "establishes an incentive system aimed at adapting economic activity to the new context created by COVID-19" in this new phase, which foresees the gradual deconfinement, with the intention of "reducing the increased costs for the rapid re-establishment of the operating conditions of micro, small and medium companies", being supported, namely, the costs of purchasing personal protection equipment for workers and users, hygiene equipment, disinfection contracts and the costs of reorganizing workplaces and changes in the layout of establishments.

 

As a brief summary, the main features of this Incentive System are described below:

 

1. Purpose: to support companies in the effort of adaptation and investment in their establishments, adjusting the methods of work organization and contact with customers and suppliers to the new conditions in the context of the COVID-19 disease pandemic, ensuring compliance with the established regulations and recommendations of the competent authorities;

 

2. Recipients: Micro, Small and Medium Companies;

 

3. Geographical area: Portuguese mainland.

 

4. Sectors of Activity: all economic activities[1], including commercial and service activities, accommodation and restaurants, industry and transportation, with the exception of the following: fishing and agriculture, primary agricultural production and forestry; processing and marketing of agricultural products; processing and marketing of forestry products; financial service activities, except insurance and pension funds[2]; insurance, reinsurance and pension fund activities, except compulsory social security[3]; supporting activities for financial services and insurance[4]; manufacture of weapons[5]; manufacture of military combat vehicles[6]; lotteries and other gambling games[7];

 

5. Non-eligible expenses:

a)company's projects for itself;

b) acquisition of goods in usage condition;

c) recoverable value added tax, even if it has not been or will not be effectively recovered by the beneficiary;

 

6. Payments:

a) 50% automatic upfront payment after validation of the acceptance term;

b) the request for final payment must be submitted by the beneficiary within a maximum of 30 working days after the date of completion of the project.

 

 

I. SPECIFICS OF THE ADAPT PROGRAM FOR MICRO-COMPANIES [8]

 

1. Applications: open from May 15, 2020 and until the endowment is exhausted, with only one application accepted per company. Applications are submitted using the electronic form available at Balcão 2020 [9];

 

2. Deadline for decision: Up to 10 working days after the application has been submitted;

 

3. Eligibility criteria of the company: The eligibility of the company depends on this:

a) To be legally constituted on March 1st, 2020 and to have organized accounting;

b) Fulfill the conditions to obtain the status of micro-companies[10]; and

c) Have, or be able to confirm, that the situation with the Social Security and Tax Authority is regularized[11].

 

4. Criteria for Project eligibility: The purpose of the project must be to make an investment of a value in eligible expenditure of not less than 500.00 euros and not more than 5,000.00 euros, for the adaptation of the company's activity to the context of the COVID-19 disease, guaranteeing the safety of workers, clients and the relationship with suppliers, complying with the established standards and the recommendations of the competent authorities;

 

5. Project duration: Maximum execution within 6 months from the date of notification of the favorable decision, with a limit until December 31, 2020, being eligible, retroactively, the expenses, made from March 18;

 

6. Eligible expenses are [12]:

a) acquisition of personal protection equipment needed for a maximum period of six months to be used by workers and clients in spaces with public attendance, namely masks, gloves, face shields and others;

b) purchase and installation of sanitizing equipment and automatic dispensing of disinfectants, as well as their consumables, for a maximum period of six months, namely disinfectant solution;

c) contracting facilities disinfection services for a maximum period of six months;

d) purchase and installation of automatic payment devices, covering those using contactless technology, including the costs of contracting the service for a maximum period of six months;

e) initial costs associated with domiciliation of applications, initial adherence to electronic platforms, initial subscription to applications in «software as a service» systems, creation and initial publication of new electronic content, as well as inclusion or listing in directories or search engines;

f) reorganization and adjustment of workplaces and space layout to current guidelines and best practices, namely, installation of automatic doors, installation of sensor lighting solutions, installation of sensor dispensers in bathrooms, creation of contingency areas, among others;

g) physical isolation of production or sales or service spaces, namely, installation of dividers between equipment, production cells, desks, service stations or counters;

h) acquisition and installation of other control and physical distancing devices;

i) costs with the acquisition and placement of information and guidance to employees and the public, including vertical and horizontal signs, inside and outside the spaces;

j) expenses with the work of certified accountants or statutory auditors, in validating the expenses of requests for payment;

 

7. As regards the Financing rate:

a) non-repayable grant support;

b) eligible expenses are covered by an incentive rate of 80%;

 

8. Budget allocation: 50 Million

 

 

II. SPECIFICS OF THE ADAPT PROGRAM FOR SMALL AND MEDIUM-SIZED COMPANIES ^[13]

 

1. Applications: open from May 15 until 7pm on June 30, 2020, with only one application accepted per company. Applications are submitted using the electronic form available at Balcão 2020[14].

 

2. Deadline for decision: Up to 20 working days after the application has been submitted.

 

3. Eligibility criteria of the company: The eligibility of the company depends on this:

a) be legally constituted before March 2020, and have organized accounting;

b) have certified its Small or Medium Company status [15];

c) Have, or be able to confirm, that the situation with the Social Security and Tax Authority is regularized [16];

d) to have the situation regularized regarding the replacements, within the framework of the European Structural and Investment Funds financing;

e) not being a company in financial difficulty [17];

f) it must not be a company subject to an outstanding recovery order, still pending, pursuant to a previous Commission decision declaring an aid illegal and incompatible with the internal market [18].

 

4. Criteria for Project eligibility: The purpose of the project must be to make an investment of a value in eligible expenditure of not less than 5,000.00 euros and not more than 40,000.00 euros, for qualification of processes, organizations, products and services of SMEs, namely the adaptation of their establishments, work organization methods and relationship with customers and suppliers to the new conditions in the context of the COVID-19 disease, ensuring compliance with the established standards and recommendations of the competent authorities.

 

5. Project duration: Maximum execution within 6 months from the date of notification of the favorable decision, with a limit until December 31, 2020. The project must not have started before the submission of the application [19].

 

6. Eligible expenses [20]:

a) costs with reorganization and adaptation of workplaces and/or layout changes, which allow the implementation of the guidelines and good practices of the competent authorities in the context of COVID-19 disease, namely hygiene, safety and physical distancing measures;

b) purchase and installation of sanitizing equipment and automatic dispensing of disinfectants;

c) purchase and installation of automatic payment devices, including those using contactless technology;

d) acquisition and installation of other control and physical distancing devices;

e) costs with the acquisition and placement of information and guidance to employees and the public, including vertical and horizontal signs, inside and outside the spaces;

f) contracting facilities disinfection services for a maximum period of six months;

g) acquisition of specialized consulting services for the redesign of the facilities layout and for the elaboration of business contingency plans and best practice manuals;

h) acquisition of specialized consulting services for the adaptation of the business model to the new challenges of the context following the COVID-19 disease pandemic;

i) initial costs associated with domiciliation of applications, initial adherence to electronic platforms, initial subscription to applications in «software as a service» systems, creation and initial publication of new electronic content, as well as inclusion or listing in directories or search engines;

j) expenses with the work of certified accountants or statutory auditors, in validating the expenses of requests for payment;

 

7. Financing rate:

a) non-repayable grant support;

b) eligible expenses are covered by an incentive rate of 50%;

 

8. Budget allocation: 50 Million Euros - FEDER.

 

 

Lisbon, May 2020.

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[1] According to the portuguese classification of economic activities, registered in the Information System of the Portuguese Classification of Economic Activities platform.

[2] Division 64, of section K according to the Portuguese Classification of Economic Activities, revised by Decree-Law No. 381/2007 of 14 November, in its current version;

[3] Division 65, of section K according to the Portuguese Classification of Economic Activities, revised by Decree-Law No. 381/2007 of 14 November, in its current version;

[4] Division 66, of section K according to the Portuguese Classification of Economic Activities, revised by Decree-Law No. 381/2007 of 14 November, in its current version;

[5] Division 25, section C, subsection 25402 according to the Portuguese Classification of Economic Activities, revised by Decree-Law No. 381/2007 of 14 November 2007, in its current version;

[6] Division 30, section C, subsection 30400 according to the Portuguese Classification of Economic Activities, revised by Decree-Law No. 381/2007 of 14 November 2007, in its current version;

[7] Division 92, section R, subsection 92000 according to the Portuguese Classification of Economic Activities, revised by Decree-Law No. 381/2007 of 14 November 2007, in its current version;

[8] Company with less than 10 employees and an annual turnover or annual balance sheet total not exceeding EUR 2 million;

[9]  Available at https://balcao.portugal2020.pt/;

[10] For the purpose of attesting the PME statute, obtain or update the corresponding Electronic Certification, foreseen in the Decree-Law no. 372/2007, of November 6, in its current version, through the website of IAPMEI - Agência para a Competitividade e Inovação, I. P. (IAPMEI, I. P.).

[11] It is essential that the entity maintains this criteria until the last reimbursement is received, because the payments made to the beneficiaries under this Program depend on the prior verification of compliance with this criteria.

[12] The support granted under the Adapt Program cannot be combined with other public aid for the same expenses.

[13] A Company that employs less than 250 people and whose annual revenues do not exceed 50 million euros or whose annual balance sheet total does not exceed 43 million euros and which holds the corresponding Electronic Certification, provided for in Decree-Law No 372/2007 of November 6, in its current version.

[14] Available at https://balcao.portugal2020.pt/;

[15] For the purpose of proving the SME statute, obtain or update the corresponding Electronic Certification, provided for in Decree-Law No. 372/2007 of November 6, in its current version, through the IAPMEI - Agência para a Competitividade e Inovação, I. P. (IAPMEI, I. P.) website.

[16] It is essential that the entity maintains this criteria until the last reimbursement is received, because the payments made to the beneficiaries under this Program depend on the prior verification of compliance with this criteria.

[17] In accordance with the definition provided for in Article 2 of Commission Regulation (EU) No 651/2014 of 16 June 2014;

[18] As provided for in Article 1(4)(a) of Commission Regulation (EU) No 651/2014 of 16 June 2014

[19] In the case of SMEs, unlike the rules defined for Microenterprises, the expenses included in the project submitted by the company will only relate to expenses incurred after the approval of the project by the competent authority. There is no retroactivity as described above.

[20] The support granted under the Adapt Program cannot be cumulated with other public aid for the same expenses.

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O presente documento destina-se a ser distribuído entre clientes e colegas e a informação nele contida é prestada de forma geral e abstrata, não devendo servir de base para qualquer tomada de decisão sem assistência profissional qualificada e dirigida ao caso concreto. O seu conteúdo não pode ser reproduzido, no seu todo ou em parte, sem a expressa autorização do(s) editor(es). Caso deseje obter esclarecimentos adicionais sobre este tema contacte Alexandre Palma Aldeagas (apa@vma-associados.com), Marta de Sousa e Meneses (msm@vma-associados.com) ou Joana Cotovio (jrc@vma-associados.com).

O presente documento destina-se a ser distribuído entre clientes e colegas e a informação nele contida é prestada de forma geral e abstrata, não devendo servir de base para qualquer tomada de decisão sem assistência profissional qualificada e dirigida ao caso concreto. O seu conteúdo não pode ser reproduzido, no seu todo ou em parte, sem a expressa autorização do(s) editor(es). Caso deseje obter esclarecimentos adicionais sobre este tema contacte Alexandre Palma Aldeagas (apa@vma-associados.com), Marta de Sousa e Meneses (msm@vma-associados.com) ou Joana Cotovio (jrc@vma-associados.com).