Amendments to the SMEs Finance Act

The enactment of Law No.151/2022 amending some provisions of Law No.141/2014 is a step towards providing more protection to the entrepreneurs by paying special attention to Small & Medium Enterprises “SMEs”.

The new law has added two new definitions, one of which includes brokerage activities to collect or grant funding that helps both clients and funding providers with the collection of the installments. The other definition is aimed to those who wish to engage in a paid-guarantee agreement. In addition, according to Article 14 bis, the Authority’s Board of Directors shall establish the conditions for performing such activities which can only be practiced if recorded in the relevant registry.

The penalty of imprisonment and/or fine referred to in article 21 bis shall apply, should fraudulent acts or misrepresentation be prevalent. However, reconciliation is available for such crimes before the competent court or Public Prosecution.

Finally, the penalty of imprisonment and/or fine referred to in Article 21 bis 1 shall apply to those who use brokerage activities to grant or obtain funding or participate in a paid guarantee if not recorded in the relevant registry.