Central Portugal Businesses Demand Direct Grants to Protect Jobs After Storm Kristin

The business associations of Santarém, Leiria and Coimbra have formally demanded outright grants, arguing that the current mix of subsidised loans and tax breaks still leaves hundreds of local firms on the brink after storm Kristin.

Why This Matters

• Direct cash, not more credit – associations want a larger share of the €1.5 B reconstruction package converted into non-repayable aid.

• Application windows are already open – key calls under Portugal 2030 and the Banco Português de Fomento close between March and April.

• Jobs at stake – micro and small companies employ over 57 000 people across the three districts.

A Storm, a Bill, and a Funding Gap

When Kristin swept through central Portugal in late January, it flooded greenhouses, ripped roofs from industrial units and blocked access roads crucial to winter tourism. Initial tallies from municipal civil-protection teams put private-sector losses above €420 M, of which barely one-third is insured. The Portugal Cabinet reacted quickly: a calamity declaration covering 69 municipalities and a €2.5 B relief envelope. Yet only €100 M of the flagship credit line can turn into grants – “far too little,” says NERLEI’s chair, António Poças.

Where Aid Stands Today

BPF Reconstruction Lines – up to 100 % financing of rebuilding costs, with 10 % convertible into a grant after 3 years if the firm keeps staff and operations.

Social-security holidays – six-month exemption renewable once, trimming labour costs by roughly €210 per worker.

Fast-track lay-off scheme – wage support of 70 % of gross pay; firms pay the remaining 30 %.

IEFP wage subsidy – €1 330 per full-time job preserved during the emergency.

Tax and bank moratoria – VAT, IRS and IRC deadlines shifted, plus six-month grace on existing loans.

Why Entrepreneurs Say Loans Are Not Enough

Most microenterprises in these districts carry slim cash reserves – in many villages the padaria or turismo rural is also the owner’s household income. Extra credit, even subsidised, means more risk in a year when “customers are cancelling Easter bookings and farmers lost the next harvest,” notes NERSANT economist Marta Tomé. Agriculture, tourism and retail, three labour-intensive sectors, claim they cannot wait 36 months for a possible conversion to grants.

What This Means for Residents

A prolonged funding gap could translate into lay-offs this spring, pricier fresh produce in Lisbon supermarkets and slower repairs to regional roads used by daily commuters. Conversely, if the grant component is beefed up, local councils expect a quicker restart of seasonal jobs that draw thousands of students and migrants to the Centro region each summer.

How to Tap the Existing Schemes

• Check the Balcão dos Fundos portal for the “Reconstruction-Investimento” call; dossiers must be uploaded by 18 March.

• Gather before-and-after photos, insurance statements and municipal inspection reports – they are mandatory attachments.

• For agriculture-specific support, contact the regional Direção de Agricultura; the €40 M grant window closes 31 March.

• Use the new one-stop desks: Santarém’s Loja do Cidadão, Leiria’s parish help points and Coimbra’s dedicated e-mail (empresas@cm-coimbra.pt).

European Models Portugal Could Copy

Several EU programmes show higher grant ratios. The Innovation Fund covers up to 60 % of green-tech costs, while Spain’s rural resilience scheme offers 50 % non-repayable support for tourism renewal. Local MPs argue that reallocating PRR money could mirror those benchmarks, especially for energy-efficiency upgrades that simultaneously cut emissions and bills.

The Road Ahead

Parliament’s budget committee meets next week to scrutinise a proposal that would lift the grant ceiling from €100 M to €300 M and shorten the conversion period to 18 months. If approved, guidelines could be published by mid-March – just in time for firms to amend applications already in draft. Until then, accountants urge companies to submit anyway: “Better to be in the queue – rules can change, deadlines rarely do.”