Extraordinary measures to provide solvency to businesses due to COVID-19
Information on COVID-19 aid measures
On Friday, March 12, 2021, the Council of Ministers approved Royal Decree Law 5/2021, Extraordinary measures to provide solvency to businesses, aimed at continuing to protect the productive fabric, avoiding a structural impact on the economy and preserving employment.
With four areas of action, three consisting of funds for viable companies with a total of €11 billion, and a fourth one to expand bankruptcy moratoriums and other measures to defer tax debt.
Specifically, three aid funds are created for viable companies whose asset situation has deteriorated as a result of the pandemic. Of these, the "Covid line for restructuring financial debt," and specifically the "Direct transfers" measure under the Code of Best Practices, is still open.
Conditions for requesting the 3 support funds
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- a) They must engage in the activity associated with the grants until June 30, 2022.
- b) They may not pay dividends in 2021 and 2022.
- c) Not approve increases in senior management remuneration for a period of two years from the application of any of the measures.
Similarly, the RDL approves extending the deadline to apply for ICO-backed loans until 6/1/2022. If you have not applied, you can find more information here.
Covid line to restructure financial debt
This line is endowed with a €3 billion fund, the purpose of which is to lay out public support measures and introduce a Code of Best Practices (CBP).
It will apply to transactions backed by a public guarantee between 03/17/2020 and 03/12/2021 by self-employed workers and companies that meet certain requirements, as detailed in the following document, and are thus not general measures for all holders of state-backed operations.
Find out more: Adherence to the BBVA Code of Best Practices
For more information on the measures included, see the Code of Best Practices