BPF - Entrepreneurship and Self-Employment Support Program TAE 1.973%

Turn ideas into successful businesses

Funding for entrepreneurs looking to start their businesses and create jobs

2 ladies making bouquets in a flower shop

BPF - Entrepreneurship and Self-Employment Support Program TAE 1.973%

Turn ideas into successful businesses

Funding for entrepreneurs looking to start their businesses and create jobs

BPF entrepreneurship

Benefits Eligibility How much is it Financing Requirements

Support for investment projects or Company equity acquisition

For investment projects to create businesses or acquire equity from an existing Company, with subsidized financing on the interest rate and mutual guarantee commission.

Designed for unemployed individuals and young adults between 18 and 35 years old, inclusive

Young adults seeking their first job who have never held a professional position, or if they have, it didn't last more than 12 months.

Microinvest Program for credit operations up to €20,000

For projects and loan contracts up to €20,000 and applications submitted under the National Microcredit Program

For unemployed individuals registered at employment centers

This applies to those who have been registered for 9 months or less due to involuntary unemployment, or for more than 9 months, regardless of the reason.

Support for investment projects or Company equity acquisition

For investment projects to create businesses or acquire equity from an existing Company, with subsidized financing on the interest rate and mutual guarantee commission.

Designed for unemployed individuals and young adults between 18 and 35 years old, inclusive

Young adults seeking their first job who have never held a professional position, or if they have, it didn't last more than 12 months.

Microinvest Program for credit operations up to €20,000

For projects and loan contracts up to €20,000 and applications submitted under the National Microcredit Program

For unemployed individuals registered at employment centers

This applies to those who have been registered for 9 months or less due to involuntary unemployment, or for more than 9 months, regardless of the reason.

Support for investment projects or Company equity acquisition

For investment projects to create businesses or acquire equity from an existing Company, with subsidized financing on the interest rate and mutual guarantee commission.

Designed for unemployed individuals and young adults between 18 and 35 years old, inclusive

Young adults seeking their first job who have never held a professional position, or if they have, it didn't last more than 12 months.

Microinvest Program for credit operations up to €20,000

For projects and loan contracts up to €20,000 and applications submitted under the National Microcredit Program

For unemployed individuals registered at employment centers

This applies to those who have been registered for 9 months or less due to involuntary unemployment, or for more than 9 months, regardless of the reason.

What you should know

What are the criteria for applying?

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Must be at least 18 years old to apply for the financing

smiling businessman leaning on a balcony

At least half of the applicants must meet the IEFP requirements for creating a job position

View requirements

Submit a project validation document in the case of proposals from Programa Nacional de Microcrédito

View how to validate

Create a new business or acquire equity from an existing Company

Effective Annual Rate (TAE)
                    1.973%
                

TAE of 1.973% calculated based on a TAN of 0% in the 1st year of the loan (full interest rate subsidy by the line management entity) and a TAN of 2.5% in the 2nd to 7th years of the loan (without subsidy), resulting from the 1-month Euribor (simple arithmetic average of the daily quotations of the month before the interest counting period, rounded to the nearest thousandth, which for this example was that of May 2022, corresponding to -0.546% which, as it is negative, is considered high at 0.000%), plus a spread of 2.5% contracted for bank financing of €50,000, for a term of 84 months, which includes a capital grace period of 24 months, with a repayment plan in equal and successive monthly installments of capital, plus the respective interest.

TAE (Effective Annual Rate) calculated under Decree-Law No. 220/94 of August 23rd.

Financing limits

Microinvest for projects and loan contracts up to €20,000

Invest+ for projects exceeding €20,000 and up to €200,000, with the limit of the loan contract being €100,000

The maximum financing to be granted cannot exceed either 95% of the total investment or €50,000 per full-time job created.

Working capital - limited to 30% of eligible investment.

Expenses for preparing the business plan and financing request - limited to 15% of the eligible investment and up to a maximum limit of 1.5 times the amount of the social support index (IAS).

Expenses that are not substantiated and recognized by Millennium bcp as relevant to the project will not be accepted.

Investment expenses are calculated at current prices, and value-added tax is deducted whenever the Company is a taxable subject and can deduct it.

View price list

Financing

Here are all the conditions

Term

84 months, including a 24-month capital grace period.

Interest rate

Indexed to Euribor 30 days, plus a spread of 2.5%.

Capital Refund and Interest Payment

60 fixed capital installments paid monthly.

Interest paid monthly and in advance.

Bonus

1st year - full interest rate bonus

2nd and 3rd years - spread with a reduction of 0,25%

If the charge for the Customer exceeds 3.5%, IEFP will pay the excess. If the charge is less than 1.5%, IEFP will not make any contribution.

Guarantee commission: fully subsidized.

Requirements

Requirements for the Company to be created

Be a private, for-profit Company that creates jobs and contributes to boosting the local economy.
Have at least 50% of unemployed people registered at the Employment Centers who have not yet started their activity at the time of the financing application and hold more than 50% of the share capital and voting rights.
Not be established at the time of submitting the financing request to Millennium bcp, except for projects that include purchasing share capital as part of the investment.
Maintain the operations until the obligations associated with the project are fulfilled.
Comply with the financing requirements until all obligations related to the project are completed.
Not be subject to insolvency proceedings, nor meet the criteria under national law for being subject to insolvency proceedings at the request of its creditors.

Project requirements

Intended for the creation of a new Company from scratch or for the acquisition of the right of transfer or capital of an existing Company;
For company creation projects, during the investment phase, the following cannot be involved:
- The creation of more than 10 jobs;
- A total investment exceeding €200,000, which includes expenditures on tangible and intangible fixed capital, interest during the investment phase, and working capital;
In projects involving the purchase of share capital or the transfer of an establishment, the acquired company cannot be held in 25% or more by the spouse, de facto partner, or family member of the candidate up to the 2nd degree in a direct or collateral line or by another company where these individuals have 25% or more of the respective capital;
For projects presented by people previously receiving unemployment benefits, the amount received must be used to finance the project. The amount can be applied to operations of a different nature, namely, in the constitution of the new company's share capital;
For projects involving the transfer of a pre-existing establishment, such as through lease assignment or business transfer, the projects must result in a net creation of full-time jobs filled by unemployed individuals registered at employment centers through open-ended employment contracts.;
Operations intended to finance the acquisition of real estate, acquisition of a share in the company's share capital to be acquired, or operations intended for financial restructuring, consolidation, or replacement of credits and restructuring are not considered eligible.

BPF - Entrepreneurship and Self-Employment Support Program TAE 1.973%

Turn ideas into successful businesses

BPF - Entrepreneurship and Self-Employment Support Program TAE 1.973%

Turn ideas into successful businesses

Here’s everything you need to know

What, why, and for whom?

Here’s everything you need to know

What, why, and for whom?

Here’s everything you need to know

What, why, and for whom?

What you should know

What are the criteria for applying?

Rates and charges

Now the numbers

Financing

Here are all the conditions

Requirements

Requirements for the Company to be created

Project requirements

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