Updated: 29/03/21
On 12 March last, the central government approved a direct aid plan for SMEs and the self-employed The aim is to support their business solvency, which has been severely damaged by the pandemic caused by COVID-19. The total financial package amounts to ¤11 billion, of which ¤7 billion will be allocated to the above-mentioned direct aid, and the other ¤4 billion will be distributed between two funds. One, endowed with ¤3 billion, will finance the restructuring of financial debt caused by COVID-19 and the other will be used for the recapitalisation of small and medium-sized enterprises.
Measures applied to SMEs and the self-employed
Eligible applicants are entities, entrepreneurs and professionals whose activities are centred on Annex I of the Royal Decree and whose annual turnover has fallen by more than 30% compared to 2019. Entrepreneurs and entities that were loss-making in 2019 will not be eligible for support.
Entrepreneurs who are taxed under the objective assessment system (modules) will also be eligible for aid.
The Autonomous Regions will determine the amounts of aid to each beneficiary, with the following limits:
The 40% of the drop in turnover between 2019 and 2020, for entities and entrepreneurs with up to 10 employees.
The 20% of the drop in turnover between 2019 and 2020, for entities and employers with more than 10 employees.
In these two cases, the aid will be capped at a minimum of 4,000 euros and a maximum of 200,000 euros.
For entrepreneurs and professionals in objective estimation, a maximum of 3,000 euros.
The aid is earmarked for the payment of suppliers in order of seniority and/or the repayment of financial debt, with priority being given to debt with a public guarantee.
Requirements for obtaining this aid.
The continuation of the activity until 30 June 2022.
No dividends during 2021 and 2022.
Do not approve increases in the remuneration of senior management.
Be up to date with tax and social security obligations.
In the case of Permanent Establishment, no residence in a tax haven.
Not to have been sentenced to loss of obtaining subsidies, or guilty termination of public contracts.
Not to have been declared bankrupt.
If you have doubts and do not yet know how these plans can help your business, we invite you to contact us. Our expert advisors in legal and accounting matters will help you.
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