Community of Madrid Grants - COVID-19

Financial support for Madrid SMEs affected by COVID-19

On October 9, 2020, the regulations governing the Direct Award of Grants to COMPANIES affected by COVID-19 that meet the following requirements were approved:

Beneficiaries

1. The grants provided for in these regulations may be awarded to Madrid SMEs (COMPANIES) that have been affected by COVID-19 and that have salaried employees on permanent contracts.

2. SMEs are deemed to have been affected by COVID-19 if they fall within any of the following cases:

• Activities whose opening to the public was suspended under Royal Decree 463/2020, of March 14, declaring the state of alarm (estado de alarma) for the management of the health crisis caused by COVID-19.

• Activities that, while not included in the preceding list, experienced in the second quarter of 2020 a reduction in turnover of at least 25% compared with the first quarter of the same year or with the second quarter of 2019.

3. SMEs must be up to date with their payment obligations to the Spanish Tax Agency (AEAT), the tax authorities of the Community of Madrid, and Social Security, and must provide evidence that they have implemented an occupational risk prevention plan.

Eligible expenses

1. The following categories of expenses accrued from March 14, 2020, up to the date on which the grant application is filed will be eligible:

a) Payment of payroll and social security contributions actually paid by the SME.

b) Payments for the acquisition of products and services related to protection, prevention, and hygiene measures necessary to ensure the safety of staff in connection with COVID-19.

c) Payment of rent for business premises.

Amount of the grant 

1. As a general rule, the amount of the grant will be determined by the number of salaried employees of the SME. Based on that figure, the amount of the grant will be set according to the following brackets:

• SME with 1 to 3 employees: single lump sum of €2,500.
• SME with 4 to 9 employees: single lump sum of €5,000.
• SME with 10 to 249 employees: single lump sum of €10,000.

2. These amounts will be increased by 25% if the SME carries on a priority economic activity. Priority activities are those classified under Section C, “Manufacturing,” Divisions 10 to 32; and/or Section G, Division 47, “Retail trade, except of motor vehicles and motorcycles,” of the National Classification of Economic Activities (CNAE 2009). The grant will be:

• SME with 1 to 3 employees: single lump sum of €3,125.
• SME with 4 to 9 employees: single lump sum of €6,250.
• SME with 10 to 249 employees: single lump sum of €12,500.

The full amount of the grant must be supported with evidence by the SME at the time the application is filed.

At OC Asesores, we will be delighted to help you handle the grant application.