subject: Law 488: Funding for Companies [print this page] Law 488: Funding for Companies Law 488: Funding for Companies
When there are laws that help enterprises is very important to know how to take this opportunity to exploit its resources, the law offers grants to 488 companies operating in industry sectors and activities of trade and tourism.
Objectives and Beneficiaries of the Law
Law 488 of 92 is a text designed to provide assistance on concessional terms for companies and businesses operating in disadvantaged areas of our country. The beneficiaries, therefore, the economic resources available to entrepreneurs and business are able to develop a plan to invest in industry, tourism and trade.
In particular, they can enjoy the benefits of Law 488 of 92 companies covered in the service sectors, construction, quarrying and manufacturing, tourism, business and the production and distribution of electricity.
Economic assistance provided can range from a minimum total of 1 million up to a maximum of 50 million for industry and tourism, while the trade sector is capped at 20 million .
What funds the Law
Law 488 of 1992 specifies a number of interventions in favour of which receive contributions or to "grant", either in the form of subsidized loans.
The costs that are incurred by the Act must relate to:
Acquisition of property and infrastructure.
Purchase of machinery, equipment and industrial installations.
Purchase of computer programs.
Purchase of patents for new technologies and production processes.
Masonry.
The Advantages and Conditions
The importance of Act 488 of 1992 is due to the presence of facilities that are known to firms and companies. These conditions are made substantial contributions in a very competitive rate, equal to 0.50% which, however, is right alongside a bank loan that is equal in amount and duration to "normal." The bank loan should not be less than 15% of the total investment while any firm or company, however, has the obligation to make a contribution of at least 25% of the investment.
Take advantage of Law 488: The Question
488 The law specifies that each company and a company that wants to take advantage of the benefits and contributions will forward the application to one of the banks affiliated with the Ministry of Productive Activities.
Every business and organization shall be represented by their attorney, who will sign the application and respect the time specified by the Ministry with a special decree. We specify how to fill out and submit the request via an online form on the website of the Ministry or through paper forms more specific.
The provision of economic aid
But how does the payment of the fees provided by law 488 of 92?
Assuming that the granting of aid is subject to successful application of the (then of all assessments on the eligibility of the company by the Ministry and Banks), the contribution is made easier in two or more annual instalments of equal amount: the first instalment may also represent a useful advance the start of work behind the submission of a bank guarantee.
The bank financing, however, divided into a maximum of six instalments will be paid during the progress of work and without any anticipation on their start.
