Lexidy Law Boutique

From Monday, March 16th, the State of Alarm came into effect in Spain due to the coronavirus sanitary crisis. As a result, the Spanish economy is going to be strongly affected and therefore the Spanish Government has approved the Royal Decree 8/2020 of extraordinary urgent measures to face the economic and social impact of the COVID-19. With this regulation, the Spanish Government has announced an aid for companies mobilizing nearly 20% of the Gross Domestic Product, that is 200 billion euros with measures to protect and support families, workers, self-employed and companies.

 

SUPPORT MEASURES FOR SMALL AND MEDIUM-SIZED ENTERPRISES

One of the main issues this sanitary crisis is highlighting is the need to ensure that companies are prepared to operate in a digital environment. It is therefore essential to make a determined effort to prepare and equip SMEs for digital development. Especially relevant in this context is the provision of teleworking solutions and the purchase and leasing of equipment and services for digitalisation.  It is also planned to provide companies with financing of up to 200 million euros through the Official Credit Institute to meet the financial needs of SMEs in their activities and investments, for the purchase and leasing of equipment and services for digitization among others and, in particular, for the provision of off-site work solutions.

Therefore, Spanish companies considered as small and medium-sized enterprises in the following circumstances will be the beneficiaries of the public loans and credits:

  • Internationalised companies or companies in the process of internationalisation, whose main economic activity consists of exporting goods.
  • Companies that face a liquidity problem or lack of access to financing resulting from the impact of the COVID-19 crisis on its economic activity.

In order to apply for an ICO credit line, you have to present the corresponding application at a credit institution authorised to grant this type of credit and present your case. Once the application has been studied and approved, the credit will be granted at an interest rate that may never be higher than the maximum AER that the Credit Institution may apply to the transaction depending on its repayment term.

How can Lexidy help me?

At Lexidy we can clarify any doubt you may have regarding the scenario to apply for government aid for companies created by the COVID-19. Get in touch with us and see what we can do for you.