The government at last is making available low-interest loans totalling €3.5 million to help Albufeira’s business community get back on their feet after last November’s devastating flood.
The Ministry of the Economy will provide low-interest loans with repayments periods of up to ten years to those financially affected by the floods. Each applicant is limited to €150,000 and there is a three year interest only period available.
An order by the Secretary of State for Trade, Paulo Alexandre Ferreira, published today in the Official Gazette specified the "creation of a credit line to support the revitalisation of local businesses in the municipality of Albufeira" with the aim of supporting businesses that have suffered losses from the flooding of the end of last year.
The money will get to business owners through loans from various banks. The credit line will be available for six months, renewable for the same period if the total has not been used up.
The repayment of principal and interest will be made in quarterly installments and the government specifies that money borrowed under this facility may not be used to refinance old debts or to buy sporty new cars.
The funds must be used to repair retail and business premises, and to replace damaged equipment as already logged and validated by Albufeira council.
Companies with debts to the taxman and Social Security may also apply, provided they undertake to pay off the money owed within six months.
