The direct Covid line of aids to Self-Employed and Companies has extended the deadline for the submission of applications in the Community of Madrid. This extension of the deadline is determined in the update of September 23.
The RDL 17/2021 also establishes an extension of the assumptions of application of these aids.
This direct Covid line of aids complements and extends those already approved in the first quarter of the year.
Direct Covid line of aids to Self-Employed and Companies
Direct aid managed by the Autonomous Regions.
The beneficiaries will be non-financial companies and the self-employed who, to a greater extent, have been affected in their activity. Provided that they have their tax domicile in Spanish territory. Or in the case of non-resident non-financial entities operating in Spain through a permanent establishment.
It is contemplated that they may be recipients, businessmen or professionals and entities attached to the sectors of activity, identified. They are related to:
- manufacturing industry activities related to commerce and hotel and catering trade
- wholesale and retail trade
- auxiliary transport sectors
- aeronautical maintenance
- activities related to culture and sports.
Their annual volume of operations (income) declared or verified by the Administration, in VAT or equivalent indirect taxation, must have fallen by more than 30% in 2020. With respect to 2019.
In no case are considered as recipients the businessmen or professionals, entities and consolidated groups that meet the requirements of being up to date with payments, but have declared a negative net result in 2019.
Its purpose will be to satisfy debt and make payments to suppliers and other creditors, financial and non-financial. As well as fixed costs, provided that these have accrued between March 1, 2020 and September 30, 2021. The time period covered by the aid is extended by 4 months. And they come from contracts prior to March 13, 2021.
- First, payments to suppliers and other non-financial creditors will be made, in order of seniority.
- If applicable, in second place, the debt with financial creditors will be reduced, giving priority to the reduction of the debt with public guarantee.
Lastly, the remainder of the aid may be used to offset the fixed costs incurred. This includes the accounting losses inherent to the business activity that have not already been covered by this or other aid. This last assumption has been included through RDL 17/2021, which came into force on September 16, 2021.
Extended deadline for submission in the Community of Madrid
This deadline has been extended until October 23, 2021.
The amounts of the grants are as follows:
- €3,000 in the case of entrepreneurs or professionals applying objective estimation (Modules).
- 40% of the drop in the volume of income of the year 2020 with respect to the year 2019, exceeding the initial 30% drop. For entrepreneurs in direct estimation, or entities that have a maximum of 10 employees.
- 20% of the drop in the volume of income for the year 2020 with respect to the year 2019, exceeding the initial drop of 30%. For business or professional entities and permanent establishments with more than 10 employees.
- The aid in the above two cases may not be less than €4,000 or more than €200,000.
No direct aid may be granted after December 31, 2021. And the companies will benefit as long as they justify to the granting body (Autonomous Community) the maintenance of the activity as of June 30, 2022.
Arrabe Integra
Business Consulting
