Direct grants for self-employed and SMEs, in response to the pandemic, will be distributed among the different Autonomous Communities.

Support to the business solvency

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

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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.