The Spanish Government has allocated EUR 7 billion for direct support to businesses. These are non-repayable grants for companies that have been hit hard by the crisis.
A further EUR 4 billion has been made available to restructure so-called ICO loans (state guaranteed bank loans) and recapitalise SMEs.
What must be complied with?
The business activity must fall within one of the 95 categories published by the government. These include tourism, transport, commerce, sports and culture (EuroEconomics has the complete list);
- The annual turnover of 2020 must have decreased by at least 30% compared to 2019;
- The 2019 profit tax return must have been positive;
- There must be no arrears in payments to the Spanish Tax and Social Security Authorities.
- No dividends may be paid for two years and management salaries may not be increased;
- The company must continue to operate at least until 30 June 2022.
What does the support consist of?
Companies with less than 10 employees can claim 40% of the amount that exceeds the 30% turnover loss. Companies with more employees can claim 20% of the amount that exceeds the 30% loss of turnover. The minimum aid to be paid is EUR 4,000 and the maximum is EUR 200,000.
The assessment of the applications and the coordination of the payments will be outsourced to the different sub-regions and it is expected that it will take until at least April or May before there will be more clarity about the exact application procedures.
In addition, the sub-regions themselves may impose additional requirements.
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