The Portuguese Development Bank (BPF) will launch two emergency credit lines totalling €1.5 billion on Wednesday to support businesses affected by the recent storms. The funds are intended to cover immediate needs and help rebuild facilities and equipment.

BPF President Gonçalo Regalado announced it today during a meeting with journalists.

Applications open on Wednesday, with funds expected to be disbursed starting Monday, 9 February. Companies taking out loans through these lines will benefit from a waiver of guarantee fees and the usual bank charges.

Applications must be submitted to BPF through commercial banks using a form available from Wednesday. The banks are responsible for obtaining validation from the business owners to formalise the loans.

The special credit lines are designed to offer businesses lower financing costs. Banks will provide loans, with BPF guaranteeing 70%-80% of the financing, depending on the company’s size.

Portuguese Development Bank Announces Emergency Credit Lines for Storm-Affected Businesses

The Portuguese Development Bank (BPF) has unveiled two emergency credit lines totalling €1.5 billion to support businesses affected by recent storms, covering sectors from industry and hospitality to restaurants and agriculture, explained BPF CEO Gonçalo Regalado.

In addition to the total financing of €1.5 billion, BPF has set aside €100 million that can be converted into non-repayable grants.

The largest line, “BPF Reconstruction Support – Investment,” provides €1 billion in loans to help rebuild facilities, equipment, biological assets, and other damaged infrastructure. To access this line, companies must submit two documents to their bank: a damage valuation statement (issued by insurers or regional development coordination commissions) or a bank assessment, and a declaration of commitment.

Commercial banks review the applications, finance up to 100% of the damages, and BPF provides a guarantee. Loans can cover 100% of the damage, but any insurance payouts or other compensation for the financed losses will be deducted from the support provided.

BPF guarantees 70% of loans for large companies and 80% for small and medium-sized enterprises (SMEs). There is also a maximum guarantee cap of 20% of the total financing per financial institution. Additionally, up to 10% of the loan amount may be converted into a non-repayable grant after 3 years, provided the company maintains its activity and employment levels (measured by staff numbers between 2025 and 2028).

Companies have up to 10 years to repay these loans, including a grace period of up to 36 months during which neither principal nor interest is due.

The second line, “BPF Reconstruction Support – Working Capital”, addresses immediate liquidity and operational needs, with a total allocation of €500 million. Repayment is over five years, with a 12-month grace period.

Under this line, micro-enterprises can receive up to €100,000, small companies up to €500,000, medium-sized companies up to €1.5 million, and large companies up to €2.5 million. Support is available to companies in municipalities declared under emergency or calamity starting January 2026. Companies headquartered elsewhere can also apply if they suffered losses in the affected municipalities.

BPF estimates that at least 120,000 companies are eligible, though the number may vary by location.