The Ministry of Science and Innovation has launched, through the Center for Technological and Industrial Development (CDTI), a series of urgent measures to mobilize 500 million euros for R&D projects of innovative companies in the context of the Coronavirus crisis.
Extraordinary measures are aimed at SMEs and midcaps active in R+D+i and they seek to alleviate the slowdown in activity, while protecting employment and competitiveness in innovative activity in Spain.
The extraordinary measures will be implemented immediately when they are applied to the funding instruments that the CDTI already has in operation. Specifically, they materialize in the exemption of guarantees when requesting aid for R+D+i projects, in the acceleration of management processes and in the approval of projects. The LIC-A instrument is also extended to the entire national territory and the justification periods for partially reimbursable aid granted are relaxed.
Exemption from guarantees
CDTI will apply a reduction in the guarantees requested to all R+D+i projects developed by startups, SMEs and midcaps, which are approved as of March 14, 2020.This measure will exempt SMEs and mid-cap companies from providing guarantees, as long as the suitability of the company and the project meets the minimum economic solvency required by CDTI and within the following limits:
- Exemption from guarantees of up to 500,000 euros for small businesses.
- Exemption from guarantees of up to 1,000,000 euros for medium-sized companies.
- Exemption from guarantees of up to 3,000,000 euros for mid-cap companies.
This guarantee exemption measure is applicable to all partially reimbursable grants from CDTI: R&D projects (PID, CIEN, CERVERA) and LIC and LIC-A innovation lines.
With these measures, it is expected to be able to mobilize a total volume of aid without guarantees for an amount close to 500 million euros.
On the other hand, when R+D+i activity is related to products considered an “emergency” by the Government in relation to COVID-19, the reduction of guarantees will be even wider:
- Exemption from guarantees of up to 1,000,000 euros for small businesses.
- Exemption from guarantees of up to 2,000,000 euros for medium-sized companies.
- Exemption from guarantees of up to 3,000,000 euros for mid-cap companies.
Currently, the following are considered “emergency” products: Surgical masks (type II and IIR), FFP2 protective mask, FFP3 protective mask, COVID-19 PCR diagnostic kits and their consumables, Rapid diagnostic kits (antigen detection), swabs, protective goggles, nitrite gloves, with and without powder, disposable and waterproof gowns, hydroalcoholic solution (biocidal and cosmetic) and its raw materials, devices for invasive mechanical ventilation (VMI), consumables or consumables for VMI equipment, Sanitary holes, Chlorhexidine.
Fast Track for the approval of CDTI projects
On the other hand, as long as the emergency situation related to the Coronavirus and its effects on economic activity persists, The CDTI will implement a management Fast Track for all the projects presented, with the objective of being able to help companies to maintain strategic investments and thus be able to mitigate the negative effect on qualified employment.
The CDTI will continuously evaluate R+D+I projects supported by partially reimbursable grants and will propose to increase the frequency of holding meetings of its Board of Directors electronically for accelerate as much as possible their approval and grant process at a time of economic recession. This Fast Track will obviously give high priority to projects that are related to products considered “emergency” that we have mentioned above.
Other additional measures
Also Direct Expansion Line (LIC-A) assistance will be extended to the entire national territory, according to the regional aid map, starting in April and with a relaxation of the justification period for partially reimbursable aid and subsidies.
