Public grants in the Community of Castilla y León

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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:

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.
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.
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:

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

Entrepreneurs or professionals applying the objective estimate for personal income tax will receive a single maximum payment of EUR 3,000.
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