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The The Community of Castilla y León has published a COVID line of direct grants for the self-employed and businesses to mitigate the effects of COVID. This public grants scheme forms part of Royal Decree 5/21, which sets out to provide companies and the self-employed with EUR 7,000 million in public grants.

What does the grant consist of?

The grant consists of a sum of money which must be exclusively used to pay off debt and make payments to suppliers and other creditors, financial or non-financial, and the fixed costs incurred by the party applying for the grant, provided the payments accrued between 1 March 2020 and 31 May 2021, in relation to contracts prior to 13 March 2021.

Which new sectors does the Government of Castilla y León include with respect to the RD?

The grants will be extended thanks to an extension of activities that will be eligible for them, which will be a total of 180 economic activities, an extension of 85 with respect to the 95 originally stipulated in Royal Decree 5/21. The new sectors include activities relating to wholesale trade (food, textiles etc.), and also retail trade (foodstuffs, hardware, paint, household appliances, furniture etc.), social services activities and care services, and culture, recreation and education.

What requirements must I satisfy?

In addition to being a non-financial company or a freelancer affected by the COVID-19 pandemic, in subsidisable sectors and being registered for tax in Castilla y León, beneficiaries of the grants must also meet the following requisites:

  • A downturn of more than 30% in their annual volume of business declared or verified by the authorities for 2020, with respect to 2019. If the objective-estimate personal income tax system applies, there will be no need to justify the reduction in volumes of business activity.
  • In 2019 and 2020 they must have carried out at least one of the activities stipulated in the CNAE activity codes of subsidisable sectors, and still be carrying them out at 13 March 2021 (introduction of Royal Decree-Law 5/2021 of 12 March). 
  • None of the circumstances stipulated in section 2 of Article 13 of Law 38/2003 of 17 November may apply to them, or those included in section 1 of additional provision four of Royal Decree-Law 5/2021, and they must be in compliance with regulations on employment integration.

In addition to these requisites, beneficiaries of the grants must undertake the following commitments:

  • Apply the grant to meet debts and make payments to suppliers and other financial and non-financial creditors, and the fixed costs incurred.
  • Continue the activity corresponding to the grants up to 30 June 2022.
  • Refrain from distributing dividends in 2021 and 2022.
  • Refrain from approving any increases in the remuneration of senior management over a period of two years following approval of the grant.

How much is the grant?

The amount of the grant is determined by the type of beneficiary:

  1. In the case of entrepreneurs or professionals in the sectors included in “RDL 5/2021” (Annex III of the published notice) applying the objective-estimate personal income tax system, the maximum grant will be EUR 3,000. For other entrepreneurs and professionals in the sectors defined in Annex III whose annual volume of operations declared or verified by the authorities for value-added tax fell by more than 30% in 2020 with respect to 2019, the amount will be EUR 4,000.
  2. When the credit has been committed in the corresponding amount following application of the amounts stipulated in section 1, provided credit is available, grants will be issued to the entrepreneurs or professionals in the sectors defined in “RDL 6/2021 Designated by the Community of Castilla y León” (new sectors included), Annex IV of the published notice, applying the objective-estimate personal income tax system, to a limit of EUR 3,000 and EUR 4,000, for entrepreneurs or professionals in the new sectors included whose annual volume of business declared or verified by the authorities for value-added tax fell by more than 30% in 2020 with respect to 2019.
  3. When the credit has been undertaken in the corresponding amount following application of the amounts stipulated in the sections above to all those who meet the conditions of eligibility as beneficiaries, any credit available will be distributed proportionately in accordance with the downturn in business in 2020 with respect to 2019 among the entrepreneurs and professionals in the sectors defined in sections 1 and 2 whose annual volume of business declared or verified by the authorities for value-added tax fell by more than 30% in 2020 with respect to 2019, without exceeding the following maximum limits of grants, with consideration in this regard of any amounts already issued pursuant to the provisions of the sections above:
  • 40% of the downturn of the volume of business in 2020 with respect to 2019 which exceeds the 30%, in the case of entrepreneurs and professionals applying the personal income tax direct-estimate system, and permanent establishments and entities with a maximum of 10 employees.
  • 20% of the downturn of the volume of business in 2020 with respect to 2019 which exceeds the 30%, in the case of entities and entrepreneurs or professionals and permanent establishments with more than 10 employees.

What documentation will I be asked for in the application?

Applicants will declare and attach the following documentation in their application:

  1. Document attesting to the representativity of the signatory.
  2. Responsible declaration of subsidies granted subject to the Temporary Framework.
  3. Responsible declaration that the applicant is not subject to any legal proceedings to ban or disqualify them from receiving subsidies.
  4. Responsible declaration of a list of debts and fixed costs generated between 1 March 2020 and 31 May 2021, pending payment.
  5. Responsible declaration of the commitments undertaken.

On presenting the application, the applicant authorises the Government of Castilla y León, the tax agency and the Treasury Ministry to exchange information in relation to the eligibility criteria and the criteria to establish the amount of the grant.

The grant will be made by bank transfer to the account stipulated by the beneficiary on the application, as follows:

  1. Entrepreneurs or professionals applying the objective estimate for personal income tax will receive a single maximum payment of EUR 3,000.
  2. Other entrepreneurs, professionals and business groups will receive an initial payment of EUR 4,000 and, where applicable, a second payment of the amount corresponding to application of the criteria for establishing the amount of the grant.

How is my grant justified when it is approved?

The beneficiary must provide telematic justification, within a maximum deadline of three months from receipt of the grant, of application of the grant to meet debt and to make payments to suppliers and other financial and non-financial creditors, and the fixed costs incurred, in the terms established.

Compliance with the aforementioned obligation will be accredited by means of presentation of a responsible declaration of the classified list of payments made to meet debt and fixed costs, with identification of the creditor and the document, its amount, date of issue and date of payment. The beneficiary, however, is obliged to keep this documentation and furnish it if required to do so during verification of the grant and any subsequent financial controls.

When the amount of the grant is more than EUR 60,000, the beneficiary must present the corresponding invoices and payments.

What is the deadline, and how can I apply for the grant?

From 20 May 2021 to 15 September 2021 in electronic format.

For more information on the public grants scheme, go to the Community of Castilla y León's website for details of the published notice.

ANNEX. ADDITIONAL SECTORS RECEIVING GRANTS ON THE BASIS OF ROYAL DECREE-LAW 6/2021 OF 2 APRIL, DESIGNATED BY THE COMMUNITY OF CASTILLA Y LEÓN:

CNAE-2009

DESCRIPTION ACTIVITY

0141

Bovine livestock milk-production operations

0142

Other bovine livestock operations

0143

Operations with horses and other equine livestock

0145

Ovine and caprine livestock operations

0146

Porcine operations

0147

Poultry breeding

0149

Other livestock operations

0150

Agricultural production in combination with livestock production

1102

Winemaking

1104

Production of other non-distilled fermentation beverages

1105

Production of beer

1011

Meat processing and conservation

1013

Preparation of meat and poultry products

1053

Production of cheese

1071

Production of bread and fresh bakery products

4520

Maintenance and repair of motor vehicles

4532

Retail trading in motor vehicle spare parts and accessories

4540

Sale, maintenance and repair of motorcycles and their spare parts and accessories

4611

Trade intermediaries in raw agricultural materials, live animals, raw textile materials and semi-finished products

4615

Trade intermediaries in furniture, household articles and hardware

4619

Trade intermediaries in miscellaneous products

4622

Wholesale trading in flowers and plants

4631

Wholesale trading in fruit and vegetables

4632

Wholesale trading in meat and meat products

4633

Wholesale trading in dairy produce, eggs, oils and edible fats

4641

Wholesale trading in textiles

4642

Wholesale trading in clothing and textiles

4643

Wholesale trading in household appliances

4645

Wholesale trading in perfumes and cosmetics

4647

Wholesale trading in furniture, carpets and lighting equipment

4649

Wholesale trading in other household items.

4662

Wholesale trading in machine tools

4669

Wholesale trading in other machinery and equipment

4671

Wholesale trading in solid, liquid and gaseous fuels and similar products

4690

Non-specialised wholesale trading

4711

Retail trading in non-specialist establishments, mostly foodstuffs, beverages and tobacco

4729

Other retail trading in foodstuffs in specialist establishments

4730

Retail trading in clothing in automotive fuel in specialist establishments

4752

Retail trading in hardware, painting and glass, in specialist establishments

4753

Retail trading in rugs, carpets, wall and floor claddings in specialist establishments

4754

Retail trading in household appliances in specialist establishments

4759

Retail trading in furniture, lighting equipment and other household items in specialist establishments

4761

Retail trading in books in specialist establishments

4763

Retail trading in recordings of music and videos in specialist establishments

4764

Retail trading in sport equipment in specialist establishments

4765

Retail trading in games and toys in specialist establishments

4775

Retail trading in cosmetic and hygiene products in specialist establishments

4776

Retail trading in flowers, plants, seeds, fertilisers, pets and their food in specialist establishments

4778

Retail trading in new items in specialist establishments

4779

Retail trading in second-hand items in establishments

4781

Retail trading in food, beverages and tobacco in stalls and markets

4941

Goods road haulage

4942

Removals services

5811

Book publishing

5821

Publishing of video games

5912

Activities involving post-production of films, videos and television programmes

5915

Activities involving film and video production

7410

Specialist design activities

7490

Other professional, scientific and technical activities

8531

Secondary education

8551

Sport and recreational education

8552

Cultural education

8553

Activities of driving and racing driver schools

8559

Other education not included elsewhere

8560

Educational activities

8610

Hospital activities

8621

General medicine activities

8622

Specialised medicine activities

8623

Odontological activities

8690

Other healthcare activities

8710

Care in residential establishments with healthcare

8720

Care in residential establishments for people with mental disabilities, mental illness and drug addiction

8731

Care in residential establishments for the elderly

8732

Care in residential establishments for people with physical disabilities

8790

Other care activities in residential establishments

8811

Non-residential social services activities for the elderly

8812

Non-residential social services activities for people with disabilities

8891

Daytime child care activities

8899

Other non-residential social services activities not included elsewhere

9003

Artistic and literary creation

9105

Library activities

9106

Archiving activities

9312

Sports club activities

9602

Hairdressing and beauty treatment

9609

Other personal services not included elsewhere

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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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Melilla

For payment of debt, suppliers and other creditors.

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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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