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Extraordinary measures to provide solvency to businesses due to COVID-19

Extraordinary measures to provide solvency to businesses in response to the COVID-19 pandemic

Find out more: direct grants from the COVID Facility

Find out if you meet the requirements, the amount of the grant and the next steps to take depending on your autonomous community.

When you open the simulator, you will be taken to an AFI (International Financial Analysts, company headquartered in Madrid, with Tax ID number A-78603206) environment, where you can take a brief anonymous survey to assess your eligibility to obtain public grants or subsidies. Under no circumstances will AFI have identifying details that can be associated with your answers

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.

Conditions for requesting the 3 support funds

 

 

    • 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 until December 31 the deadline to apply for ICO-backed loans. If you have not applied, you can find more information here.

Find out more about each grant

This initial aid package, budgeted at €7 billion, is provided to let the Autonomous Communities channel assistance to self-employed workers and businesses in the most affected sectors (the CNAEs are determined in the decree itself in Annex I). It will be accessible to all those whose volume of transactions fell by more than 30% in 2020 vs 2019.

This €7 billion has two allocations: €5 billion to all the Autonomous Communities (except the Balearic Islands and the Canary Islands) and the autonomous cities of Ceuta and Melilla, and €2 billion to the Autonomous Communities of the Balearic Islands and the Canary Islands.

Find out more: direct grants from the COVID Facility

Find out if you meet the requirements, the amount of the grant and the next steps to take depending on your autonomous community.

When you open the simulator, you will be taken to an AFI (International Financial Analysts, company headquartered in Madrid, with Tax ID number A-78603206) environment, where you can take a brief anonymous survey to assess your eligibility to obtain public grants or subsidies. Under no circumstances will AFI have identifying details that can be associated with your answers

These grants will be targeted for obligations between 03/01/2020 and 05/31/2021 that were entered into prior to the publication of this RDL. This targeted criterion has a specific priority: first, suppliers by age, and then financial debt, with priority given to debt that is backed by the state.

The RDL lays out a general framework that can be amended by the Autonomous Communities.

  • For individual entrepreneurs with an objective estimate ("modules"), €3,000.
  • For individual business owners or companies with direct estimate, two subgroups are defined, with amount limits ranging from €4,000 to €200,000.
  • Up to 10 employees, the aid will be 40% for anything over a 30% decrease.
  • Over 10 employees, the aid will be 20% for anything over a 30% decrease.

A one-month period is in place for the Autonomous Communities to sign the corresponding agreements.

The second 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).

 

Scope of application, applies to operations underwritten with 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

View the information

Funded with €1 billion, it is designed to quickly and effectively help medium-sized companies restore and prop up their solvency. These companies, despite being viable in the medium and long term, are seeing their balance sheets and markets affected by the pandemic

It will be managed by COFIDES, a company with public-private capital. The grants will be issued in the form of financial instruments, such as ordinary loans, equity loans, capital or others, to companies that are facing temporary difficulties.