Government approves aid to the self-employed and SMEs up to 25,000 euros
Self-employed and SMEs (Small and Medium Enterprises) that have seen their income fall by at least 30% in the second half of 2020, will be able to benefit from direct aid from the Canary Islands Government that ranges between 1,000 euros and 25,000 euros. This is stated in the decree-law approved yesterday (Monday) at the Governing Council meeting.
After delaying the announcement last Thursday to introduce improvements, which now has an initial budget of 85 million to help the situation of the sectors most affected by health restrictions derived from the pandemic.
As the president, Ángel Víctor Torres, pointed out, this amount may increased, and the details of this initiative will be published in the Official Gazette of the Canary Islands (BOC) today.
Torres said, “it is an unprecedented and objective procedure that aims to finance the fixed expenses of a business, from rent, non-social insurance premiums or supplies for its operation, such as electricity, water or communications.
SMEs and autonomos whose turnover has fallen by 30% or more in the second half of 2020 compared to the same period in 2019, will be eligible for these aids. The Executive's estimates foresee that there will be between 15,000 and 18,000 "potential beneficiaries" who also will be able to opt for the aid that other administrations offer "for other fixed costs due to the restrictions," explained Torres.
The call establishes two lines of aid:
- One for self-employed without employees, endowed with 18 million euros that will be managed by the Canarian Employment Service (SCE).
- A second line for SMEs and self-employed workers with employees, which will have 66 million euros and will be managed by the General Directorate for Economic Promotion of the Ministry of Employment.
SMEs and freelancers who request this help from the Canary Islands Government must submit a statement responsible for being up to date with their tax obligations and with the Social Security or Professional Mutual Fund, that no aid has been received for the same purpose and meet all requirements established in the decree law.
In addition, they must prove a drop in their billing total between the second half of 2020 and the second of 2019 of more than 30%; Present a report on the workforce of registered workers dated December 31st 2020, issued by Social Security, and accredit the registration in the corresponding activity.
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This information, the Executive points out, will be analyzed only to verify that the required requirements are met and that the necessary documentation for the processing of the application has been attached, in which case the amount of the aid will be calculated and processed. The beneficiary SMEs and self-employed will be obliged to maintain their activity for at least six months from the day following the publication of the decree law in the BOC.
The period for submitting applications will open on March 10th and will last 20 working days, until April 8th. The objective of the regional Government with this decree has been to simplify the procedure as much as possible and shorten the deadlines "as much as possible", so that the aid will reach the businesses as soon as possible.
Torres said yesterday "perhaps in days they will be able to have these subsidies whose amount will vary between 1,000 and 25,000 euros”. To determine the amount that each applicant will receive, aspects such as the number of people employed or depending on the percentage of reduction in billing that they have experienced will be assessed.
For this, the Ministry of Finance, Employment and Tourism have designed a model for calculating the amount of subsidies "novel, fair and also certifiable" for attracting the European recovery funds REACT-EU, which will finance this line of aid, although the money already been advanced by the Government of the Canary Islands.