Royal Decree-Law 5/2021, of March 12, was recently published, adopting extraordinary measures to support business solvency in response to the crisis caused by the pandemic. In order to protect the productive fabric and avoid a structural impact on the economy, different aid packages have been created.

ELIGIBILITY CRITERIA TO ACCESS AID

A series of eligibility criteria are established in said Royal Decree-Law to qualify for financial aid:

Not having been sentenced by a firm sentence to the penalty or loss of being able to receive subsidies or public aid.

• Be up to date with payment of obligations for reimbursement of subsidies or public aid.


• Be up to date with payment of tax and Social Security obligations.


• Not having tax residence in a country or territory classified as a tax haven.


• Not having been declared bankrupt.

You can consult the details of all these measures in the newsletter prepared by our specialists

In addition, the recipients of this aid must assume the following commitments:

• Do not distribute dividends during 2021 and 2022.


• Do not approve increases in senior management remuneration for a period of two years from the application of any of the measures.


• Maintenance of activity until June 30, 2022

MEASURES TO SUPPORT SOLVENCY

1. COVID LINE OF DIRECT AID TO THE SELF-EMPLOYED AND COMPANIES Its objective is for the Autonomous Communities to grant direct aid to the self-employed and companies whose income has fallen by 30% in fiscal year 2020 compared to 2019.

Self-employed people and companies will be able to access this aid as long as they meet the following requirements:

• Have tax domicile in Spain or be non-resident non-financial entities that operate in Spain through a permanent establishment.


• Be attached to the sectors defined in the list of CNAE codes that is incorporated into the Royal-Decree-Law in its Annex I. The main beneficiary groups are:
  Hotels and similar accommodations, Restoration, Transport activities, Tour operators, Physical maintenance activities, Activities related to culture.

In any case, the amount of aid may not be less than 4,000 euros or more than 200,000 euros. Except for the Balearic Islands and the Canary Islands, which may increase the maximum limits.

The Autonomous Communities must convene the aid allocation processes. The maximum deadline for granting said aid will be December 31, 2021.

2. FLEXIBILIZATION OF LOANS WITH PUBLIC GUARANTEE It includes measures to support and make more flexible loans with public guarantee, allowing this financing to be incorporated into the refinancing and restructuring processes agreed between banks and their clients; The maturity period of loans provided with public guarantee or their conversion into participatory loans is extended. The eligibility requirements and basic access conditions will be specified by subsequent agreement of the Council of Ministers.

3. RECAPITALIZATION FUND FOR COMPANIES AFFECTED BY COVID

A Recapitalization Fund for companies affected by COVID, managed by COFIDES, is created to support those viable companies that face solvency problems and that cannot access the fund managed by the State Society of Industrial Participations (SEPI) for non-profit companies. financial institutions based in Spain.The aid included within said fund is made up of financial instruments such as ordinary loans, participatory loans, capital loans, hybrids or a combination of them. The eligibility requirements, basic conditions of access to the fund and the mobilization of Resources will be specified by subsequent agreement of the Council of Ministers.

BANKRUPTCY MEASURES

In general terms, the bankruptcy measures adopted due to the pandemic are extended until December 31, 2021, specifically:

• The exemption of the debtor (in a state of insolvency) from requesting a declaration of bankruptcy is extended. Insolvency applications submitted by creditors are not admitted for processing.


• Suspension of the obligation of the bankrupt debtor to request liquidation if the approved agreement cannot be fulfilled.


• Extension to renegotiate refinancing agreements, extrajudicial payment agreements and bankruptcy agreements.


• The preferential processing of the following matters is extended until December 31, 2021:
  
  
  
  • Bankruptcy incidents in labor matters.
  
  
  • Reintegration bankruptcy incidentstion of the active mass.
  
  
  • The actions aimed at the disposal of productive units or the balloon sale of the elements of the asset.
  
  
  
  

FISCAL MEASURES

A deferral of tax debts not exceeding 30,000 euros without interest is established for those debtors, person or entity, with a volume of operations not exceeding 6,010,121.04 euros and the deadlines for the return of public credits managed by the General Secretariat of Industry and SMEs.

The deferral will be 6 months and no late payment interest will accrue during the first 4 months.

COMMERCIAL MEASURES

The possibility of holding telematic meetings in public limited companies during 2021 is established, even if it had not been provided for in the bylaws. In addition, the possibility of holding only telematic meetings in public limited companies is clarified, but as long as the identity of the subject who exercises his right to vote and is offered the possibility of accessing the meeting through telematic attendance.

OTHER MEASURES

• The necessary mechanisms are established so that the CNMV can regulate the advertising of cryptoassets or other assets or instruments presented as investment instruments.


• The suspension of interest and amortization payments corresponding to EMPRENDETUR loans is extended for an additional year.


• Execution deadlines are extended in the procedures for granting support to industrial projects under the jurisdiction of the General Secretariat of Industry and SMEs that have already been subject to an extension of the execution deadline.

Prolaw Lawyers
Madrid, March 22, 2021.