Last 16th November, the Andalusian Regional Government (“Junta de Andalucía”) signed an agreement with the Andalusian Confederation of Businessmen, in which it has been created a new Support Plan to self-employed and medium sized companies based in Andalucia, that includes measures and aids totalling 666.6 million euros, which will come in the form of direct aids (223 million), more liquidity (350 million in guarantees) and advantageous tax measures (94 million in indirect aids).
Please find attached the document of the agreement.
This Support plan consists of 10 specific lines, summarised below:
Line 1: Rentals for the self-employed, the hotel industry, small businesses, nightlife and children’s entertainment.
- 25,2 million euros
- This aid is in a one-off payment, for the payment of rent to the self-employed, generally in the form of a single payment of 1,200 euros.
- Aid for activities linked to nightlife and children’s recreation will be a one-off payment of 4,000 euros.
Line 2: Plan for the maintenance of productive activity for self-employed people in the hotel and hospitality, small shops and taxi sectors.
- 80 million euros
- This will take the form of a single payment of 1.000 euros to self-employed workers in these sectors.
Line 3: Support plan for medium and small size entities in the hospitality industry and small shops.
- 44.6 million euros.
- This aid will consist of a contribution of 1,000 euros to pymes( medium and small size companies) with registered office in Andalusia dedicated to the hostelry and catering trade and retail trade, including itinerant trade or online trade with certain requirements.
Line 4: Liquidity plan for industrial pymes.
- 50 million euros.
- This is aimed specifically at companies with less than 250 employees whose turnover has fallen by more than 25% in the first half of the year compared to the same period in 2019.
Line 5: Line of guaranteed loans for SMEs and the self-employed through “Garantia” and “IDEA”.
- 300 million of guaranteed loans for all types of pymes and self-employed workers.
- This line will run at least until 31 March 2021 and consists of guarantees for loans of a minimum amount of 12,000 euros and a maximum of 100,000, with a term of 3 to 5 years, grace period of up to 12 months and a fixed interest rate of up to 2%.
- A 100% guarantee line is also established for self-employed persons for loans of between 9,000 and 15,000 euros.
Line 6: Tax relief plan.
- 13.8 million euros
- This line includes a 50% rebate on the gambling rate for the last quarter of 2020 for establishments with gaming machines.
Line 7: Plan for the digitalisation of economic activity in commerce, hotels and restaurants and tourism for pymes and the self-employed.
- 19 million euros
- This line aims to digitally transform the Andalusian business fabric, with a special focus on the sectors most affected by the COVID-19 crisis, over a period of several years.
- with a budget of 4.8 million euros for 2021.
Line 8: Incentive plan to reduce rents.
- guarantees in the amount of 80 millions
- This heading provides for a plan to encourage rent reductions through loans guaranteed by Garantia, which will be linked to negotiations with the lessor for a reduction in rent of between 20% and 50% for at least six months.
Line 9: Plan for aid to basic supplies.
- This will consist of a social bonus to help self-employed people who have seen their turnover reduced by the pandemic, similar to those who were already in place until 21 July
Line 10: Aid lines for pymes and self-employed people in the cultural and public entertainment sector.
- 4 Millions euros
- This line provides subsidies aimed at artistic creation and the acquisition of books, as well as aid in the event of the closure of cultural spaces.
All these measures are still to be published. When that happens, it will be regulated basis, requirements and deadlines. Once it is published, the applications will be channelled through an Integrated Management Office that will be created expressly for this purpose, except for line 8, which will be referred to an office managed jointly by the Andalusian Regional Government and the Andalusian Confederation of Businessmen.
Finally, we would like to inform that the Andalusian Regional Government has specified this morning that it is possible to apply for all these aids simultaneously.
MDG Advisors Team,
