Know what Royal Decree-Law 5/2021, of 12 March, says

Royal Decree-Law 5/2021 of 12 March on extraordinary measures to support business insolvency in response to the COVID-19 pandemic. Regulates direct grants to businesses and the self-employed, in addition to other measures to support viable businesses, such as new guarantee deadlines, participating loans, or renegotiation with debt forgiveness and deferrals and other measures.

Its aims are:

  • To protect the production system until a vaccination percentage has been achieved to recover confidence and economic activity in sectors still subject to restrictions.
  • To prevent a negative structural impact to arrest the recovery of the Spanish economy.
  • To protect employment in the sectors hit hardest by the pandemic.
  • To take preventive action to prevent a major adverse impact on public finance and the financial system's balance sheets.

These measures entail public investment of up to EUR 11,000 million in four areas of activity, including a main allocation of a EUR 7,000 million fund to finance direct grants. 

Direct grants

It consists of an assignation of EUR 7,000 million in two compartments: a EUR 2,000 million compartment for the Balearic Islands and the Canary Islands and EUR 5,000 million for the others, and the distribution among Spain's autonomous communities is as follows:

Autonomous Communities and Ceuta and Melilla

Distribution (thousands of euros)

Catalonia

993.282,41

Galicia

234.470,88

Andalusia

1.109.244,34

Principality of Asturias

107.765,40

Cantabria

55.363,82

La Rioja

32.511,75

Region of Murcia

142.522,91

Community of Valencia

647.081,98

Aragón

141.348,90

Castilla-La Mancha

206.342,55

Extremadura

106.466,13

Madrid

679.287,79

Castilla y León

232.560,23

Basque Country

217.997,30

Navarra

67.620,09

Ceuta

13.862,52

Melilla

12.271,00

Canary Islands

1.144.262,08

Balearic Islands

855.737,92

Total

7.000.000,00


Direct Grants Simulator

Find out how much of a direct grant your business could benefit from.

  • Who can apply?

    • Potential beneficiaries of the grants will be the self-employed and companies (non-financial) that are registered in Spain.
    • SMEs and self-employed whose annual volume of business in 2020 fell by at least 30% with respect to 2019 and whose activity is included in the CNAE 09 codes listed in Annex I.
    • They must not have incurred any losses in 2019.
    • They must not have filed for bankruptcy, or have curtailed their business activity at the time of the application.
    • They must be up to date with payment of tax obligations and social security payments.
  • How much is the grant?

    • Maximum amount of the grant for self-employed paying tax in modules: 3.000€.
    • Amount of the grant for companies: between EUR 4,000 and EUR 200,000, which may offset a downturn of up to 40% in the volume of additional operations (in addition to the 30% downturn) for businesses and self-employed units with up to 10 employees, and up to 20% for other companies.
  • What must the grants be used for?

    • They have the ultimate aim of paying fixed costs (such as electricity bills), paying suppliers and reducing arising from the economic activity, and any monies remaining may be used to pay off bank debt.
    • Firstly, payments will be made to suppliers, in the order of oldest debts first and, where applicable, the nominal of bank debts, and priority will be given to reduction of the nominal amount of debt with a public guarantee.
  • Other conditions

    • The period for the obligations to be met is from 1 March 2020 to 31 May 2021, and they must relate to contracts prior to 13 March 2021.
    • No direct grants may be issued after 31 December 2021.

Find your Community's Direct Grants

Andalusia

249 economic activities accepted in the call.

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Aragón

Scope of aid extended to more sectors with 491 activities.

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Balearic Islands

Public grant from the Administration of the Balearic Islands.

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Basque Country

The grants are divided into three eligible lines.

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Canary Islands

It broadens the scope to the bulk of economic sectors.

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Cantabria

Aid to satisfy outstanding debts and payments.

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Castilla - La Mancha

The aid reaches 395 economic activities.

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Castilla y León

Public grant from the Community of Castilla y León.

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Catalonia

The subjective scope of grant beneficiaries has been extended.

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Ceuta

Applications may be submitted until 30 September 2021.

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Community of Madrid

They will be extended to 176 economic activities.

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Community of Valencia

Grant to support business solvency.

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Extremadura

Beneficiaries extended to the most affected sectors in the community.

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Galicia

The grants are distributed into three programs.

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La Rioja

Aid to companies and the self-employed to alleviate the effects of Covid.

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Navarra

Entities without legal personality may apply for this aid.

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Principality of Asturias

The grants are divided into 4 eligible categories.

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Region of Murcia

Grants classified into different categories.

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Melilla

We will soon have information on this grant. Stay tuned!

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