Industry foresees 50 million euros in aid to companies affected by the coronavirus crisis

The Ministry of Industry, Commerce and Tourism has approved a new aid amounting to 50 million euros to “companies that had to significantly alter their production to adapt to the needs generated by the Covid-19 health crisis”.

This is stated in the budget impact report of the decree law approved this Tuesday by the Council of Ministers in which the facilities provided by the Government to the industry in the face of the coronavirus emergency are quantified.

Within the support for industries, the Government has expanded the budget of the Compañía Española de Reafianzamiento (Cersa), within its guarantee line for the crisis, granting a credit supplement of 60 million euros from the ‘Support for Small and Medium-sized Enterprises’ program.

This Covid-19 line of guarantees has an amount of 1,000 million euros of risk assumed by Cersa and will allow mobilizing 2,000 million euros of financing to companies, benefiting 20,000 pymes.

All this in a section dedicated to the support of industries, which modifies the deadlines to present guarantees to the calls for loans granted by the General Secretariat of Industry and Small and Medium Enterprises (SGIPYME), which were pending resolution when it entered the alarm state is in effect.

In the decree law, the Government opens the door to exempt the return of the financing of Industry by the companies that accredit a fulfillment that “approaches significantly to the total fulfillment and it is verified that the objectives of the project have been reached initially raised”.

In these cases, 100% compliance with the project will be considered and no refund of the aid will be proposed, with partial reimbursements based on the different degrees of compliance recognized.

Modifications in loans until 2023

The refinancing of the loans granted by this General Secretariat is also regulated, establishing the possibility of requesting amortization modifications for two and a half years from the entry into force of the state of alarm, as well as the scope of the modifications for companies that have suffered periods of inactivity, supply interruptions in the value chain or their sales have been reduced.

These variations will be limited to the “maximum levels of aid intensity and the same levels of risk as at the time of granting”, and will include aid when the modification of the amortization conditions is granted, with the possibility of modifying the interest rate and the guarantees associated with the loans, and also subrogate these obligations to a credit institution.