TOURISM LAW AND COMPETITION – A PORTUGUESE PERSPECTIVE 461 concerning Madeira is linked to guarantees to be granted under the Mutual Guarantee System to new working capital loans, which shall not exceed 80% of the underlying loan principal for the maximum period of five years. The loan guarantees will be financed by FCGM’s own funds, to which the Instituto de Desenvolvimento Empresarial IP, RAM (“IDE, IP-RAM”)129 proportionately contributes. Both the interest on the loan and the guarantee premiums should be paid by the beneficiaries. However, should the beneficiaries (i) be eligible undertakings; (ii) commit to maintain (at least a part of ) their permanent workforce for a period of 18 months from the date of the execution of the loan agreement; and (iii) demonstrate a reduction in their volume of sales by a minimum of 40% between March and May 2020 compared to the previous 90 days130, IDE, IP-RAM, which is the entity responsible for administering direct grants under the measure, in cooperation with SPGM, should decide on the conversion of the loan principal into a direct grant. The exact amount of the direct grant per beneficiary must be determined based on its ability to maintain (at least a part of ) its permanent workforce for a period of 18 months from the date of execution of the loan agreement and is earmarked for the (total or partial) repayment of the underlying loan principal and/or of the guarantee premium. This aid scheme has subsequently been prolonged. F.2.2. Under DE MINIMIS Regulation It is also important to mention that due to the massive impact of COVID-19 in the economies of the Portuguese outermost regions, both Azores and Madeira have implemented urgent measures under the de minimis regulation131, which were considered crucial to maintain the basic economy up and running despite the COVID-19 outbreak, thus easing the difficulties companies faced in that period to comply with their obligations. For example, Madeira has implemented a credit line in the amount of 100 million euros preferentially for small and medium enterprises, under which 129 As referred above, pursuant to article 6 of the Constitution of the Portuguese Republic, the archipelago of Madeira is an autonomous region with its own statute and government. IDE, IP-RAM is a public institute under the supervision of the Regional Secretary of Economy of Madeira. IDE, IP-RAM is the competent authority to implement all the incentives for the promotion of the economic development of Madeira, and notably of monitoring any investments with regional incentives. 130 For undertakings having their head office and business in the island of Porto Santo, the minimum sale’s reduction is 15%. 131 Regulation (EU) no. 1407/2013, of 18 December 2013.
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