On March 12, the Head of State published Royal Decree-Law 5/2021 in the Official State Gazette concerning extraordinary measures to support business solvency in response to the COVID-19 pandemic.
With the objective of protecting the productive fabric and being able to help those companies and the self-employed, who are suffering the effects of the measures applied by the Government to curb the pandemic, the State will make available to the beneficiaries up to 11 billion euros, distributed in four different lines of action: three additional funds to finance direct aid, restructuring of balance sheets and recapitalization of companies and the extension of fiscal and bankruptcy moratoriums. Thus, a new one is created Covid line of direct aid to self-employed workers and companies, with a total of 7,000 million euros, which will be granted through direct aid to those companies and self-employed workers whose projects have been most affected due to the consequences of the pandemic.
Purpose of the aid
Support for solvency and reduction of private sector indebtedness. Concentrate efforts on improving the situation of those viable companies that, as a result of the measures taken by the Government to try to curb the pandemic, are suffering a temporary deterioration in their solvency indicators.
Type of funding
Grants on a finalist basis.
Beneficiaries
Companies and freelancers that have registered a decrease of at least 30% in the volume of its annual operations included in the 2020 period, compared to the figure obtained in 2019. The activity carried out by the applicant for the aid must be included in one of the codes of the National Classification of Economic Activities —CNAE 09—.These grants will in any case be subject to the commitment of Business maintenance and no dividend distribution, in order to ensure that they effectively lead to a reinforcement of solvency and to greater production and employment capacity in the context of economic recovery.
Distribution of aid
The Covid line of direct aid to self-employed workers and companies has a total budget of 7,000 million euros:
For all Autonomous Communities and the cities of Ceuta and Melilla, with the exception of the Balearic Islands and the Canary Islands, the budget will be 5 billion euros. Los 2,000 million euros The rest will be destined for Balearic and Canary Islands.
The Autonomous Communities will make the corresponding calls for the allocation of direct aid to the recipients in their territories, they will assume the processing and management of the applications, as well as their resolution, the payment of the grant, the controls before and after payment and the actions necessary to ensure the adequate use of these resources.
Amount of funding
between 4,000 and 200,000 euros per applicant.
Purpose of the investment
The provisions received by both companies and the self-employed must be destined to the debt satisfaction and payment to suppliers and other creditors, both financial and non-financial. Beneficiaries have the possibility to allocate funds to cover fixed costs.
Eligibility Criteria
Those who have declared a negative net result in the Personal Income Tax return for 2019.Those applicants who prove a volume of operations in 2020 of more than 10 million euros will be able to participate in calls in all those territories in which they carry out their activities. Unlike those who prove a volume of transactions lower than 10 million, who can only submit to the call of the Autonomous Community or City where their tax address is located. If you are interested in evaluating your company's fit with the Covid line of direct aid to the self-employed or companies, you can contact us at the following email address: comunicacion@intelectium.comMore: New Lines confirmed for Recovery, Next Generation EU
