FAME

Project information

Index: 0055C1
Acronym:ERIK ACTION
Priority:1: Innovation and the knowledge economy
Sub Theme:Innovation, research and technology development
Location PORTUGAL ALENTEJO

Topic of the practice

Good Practice Information

FAME is a public-private mechanism created to support micro-companies: It was structured and adapted according to the particular needs of councils in the Alentejo region.
The objectives of the mechanism were to stimulate investment in micro companies in order to improve their products and/or services, facilities, equipment, and other necessary modifications. The mechanism also aimed to promote investment in developing strategic areas such as quality, new technologies, environment, security and hygiene.
The mechanism is applied through a partnership between ADRAL (the regional development agency), the council and a commercial bank and provides companies with loans which must be paid back within 6 years. . The new format of FAME, that started when it take part of a national investment program (FINICIA) now includes IAPMEI (Institute of Support for Small and Medium-sized Enterprises and Innovation) and Mutual Warranty Companies.
The key innovative features of the good practice lie in the fact that the councils have an active role in the process. With their deep knowledge of the territory and environment they can guide the fund to the most needed areas or sectors, take part in the evaluation of the projects and finance 20% of the eligible amount with no interest. The different councils can also adjust the fund to their capabilities. The commercial bank also takes part in the evaluation process and finances the rest of the eligible amount (80%) with a special (low) interest rate adapted according to the particular needs of councils in the Alentejo region. The Mutual Warranty Companies guaranties 75% of the bank loan.
The objectives of the mechanism were to stimulate investment in micro companies in order to improve their products and/or services, facilities, equipment, and other necessary modifications. The mechanism also aimed to promote investment in developing strategic areas such as quality, new technologies, environment, security and hygiene.

Evidence of success

This GP is now part of a national investment programme

Contact details to obtain further information on the practice

Alexandra Correia

Adral, Alentejo

alexandra.correia@adral.pt

www.adral.pt/

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