Aid campaign for SMEs in the Community of Madrid

New aid campaign for SMEs in the Community of Madrid, effective from today.

The CAM has issued an agreement granting direct aid to the SMEs affected by Covid-19. This is in the form of a subsidy to cover the costs of salaries, social security, rentals and purchases of protective materials incurred between 14 March and 30 November 2020.

An immediate consequence of the economic impact on companies is the lack of liquidity. Associated with a limited recovery in activity, this has repercussions on their short-term economic situation. And which, in the medium term, may even endanger their solvency and survival. Affecting the employment they generate and the consolidation of the business fabric of the region.

Due to their particular characteristics, SMEs are the ones which can suffer most from these negative effects. This is why the Community of Madrid has created this aid for SMEs. They will enable them to counteract the impact of the economic situation generated by the COVID-19.

Aid to SMEs in the Community of Madrid

It is considered appropriate to manage this aid by direct grant as a matter of urgency. This should not undermine the principles of equality and objectivity in the allocation of the planned subsidies. Nor does it imply full respect for the principles of effectiveness and efficiency in the management of public expenditure.

The aid will take the form of a grant, the total amount of which the beneficiary must have allocated in advance to the payment of one or more of the expenditure items listed below.

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Beneficiaries

Madrid’s SMEs that have been affected by COVID-19 and that have salaried workers, taking into account the considerations described below:

Companies that employ less than 250 people and whose annual turnover does not exceed 50MM euros are considered SMEs. Or, whose annual balance sheet total does not exceed 43 MM euros.
Develop an economic activity and have a work centre in the Community of Madrid.
They are in one of the following cases:
- Activities whose opening to the public has been suspended in accordance with the provisions of Royal Decree 463/2020, of 14 March, declaring the state of alert for the management of the health crisis situation caused by COVID-19, and its implementing regulations.
- Activities not included in the above list, which in the second quarter of 2020 experienced a reduction of at least 25% in turnover compared to the first quarter of the same year or the second quarter of 2019.
An SME is considered to have salaried workers if it has salaried employees with a contract for an indefinite period of time. Including those subject to an ERTE at the end of the second quarter of the current year. That is, 30 June 2020.
SMEs must be up to date with the payment of their tax obligations. National, regional and local.
They must prove that they have carried out the occupational risk prevention plan.
The beneficiaries of this subsidy may not be those who meet any of the circumstances set out in Article 13.2 of Law 38/2003, General Subsidies.

Eligible expenses

Provided that they are directly related to the economic activity carried out by the SME. And whose accrual has taken place from 14 March 2020 until the day the application for aid is submitted:

Payment of salaries and social security, actually paid by the SME.
Payments for obtaining products and services related to protection, prevention and hygiene measures, necessary to guarantee the safety of personnel, in relation to COVID-19.
Payment of rent for premises.

Payment of rent for premises. SMEs that make eligible expenditure in the period between 14 March and 30 November 2020, inclusive, may receive this aid.

Amount of aid

In general, the amount will be determined according to the following tranches:

SMEs from 1 to 3 workers. A single amount of 2,500€.
For SMEs between 4 and 9 workers. A single amount of 5,000€.
SMEs between 10 and 249 workers. A single amount of 10,000€.

These figures will be increased by 25% if their activity is that of retail trade, except for motor vehicles and motorbikes. As described below:

SMEs with 1 to 3 employees. Single amount of 3,125€.
SMEs from 4 to 9 employees: Single amount of 6,250€.
SMEs from 10 to 249 employees: A single amount of 12,500€.

The amount of aid must be fully justified by the SME at the time of application.

This aid will not be cumulated with any state aid for the same eligible costs. If such cumulation results in an aid intensity exceeding that laid down for the specific circumstances of each case in a block exemption regulation or in an aid authorisation decision adopted by the European Commission.

Application deadline

Applications for these grants can be submitted from today, through the Community of Madrid’s Electronic Register.
Only one application may be submitted for each interested party. And until the funds dedicated to these grants are exhausted.

Applications must include very specific requirements and provide supporting documentation.

If you need help, do not hesitate to contact us.