State guarantees and aid for tourism and cars to restart the economy

Automatic summary, not yet reviewed

1. A new State guarantee line of up to €40,000 million is approved so that banks can finance investments by companies and self-employed workers. Applications can be made until December 31, 2020.
2. A Fund to support the solvency of strategic companies is created, managed by SEPISEPI Sociedad Estatal de Participaciones Industriales, the state-owned company that manages government stakes in companies., with €10,000 million. It can grant loans, debt or buy stakes in non-financial companies hit hard by COVID-19 that are considered strategic, always at the company's request.
3. Hotels, tourist accommodations and travel agencies in financial trouble can request up to twelve months of relief on the principal of their mortgage loans. If the property is rented out, the owner must pass on at least 70 % of that relief to the tenant in the rent.
4. A loan line of €216 million is created so tourism companies and self-employed workers can finance digital transformation and innovation projects. The loans are repayable, with very low interest rates and terms of up to six years.
5. The RENOVE 2020 Plan is back: grants for buying cleaner, safer new or nearly new vehicles while scrapping an old one. The budget is €250 million and the program runs until December 31, 2020 or until the money runs out.
6. RENOVE Plan amounts range from €200 to €4,000 depending on the vehicle and applicant, with €500 extras for people with reduced mobility, households with monthly income below €1,500, or when scrapping vehicles over 20 years old. The dealer must give a matching discount, capped at €1,000.
7. Tourism, commerce and hospitality companies linked to tourism that keep fixed-term discontinuous workers employed from July to October 2020 will get a 50 % rebate on their employer Social Security contributions.
8. Shareholders' right to leave a company for lack of dividends is suspended until December 31, 2020, so companies can keep funds and better face the recovery.

Who it affects

• Companies and self-employed workers: Can apply for State guarantees to finance investments.
• Hotels, tourist accommodations and travel agencies: Can request mortgage relief and digitalization loans, and their tenants receive part of the relief in the rent.
• Tourism, commerce and hospitality companies linked to tourism: Receive a 50 % rebate on Social Security contributions for their fixed-term discontinuous workers from July to October 2020.
• Individuals, self-employed workers and companies buying a vehicle: Can receive grants of €200 to €4,000 when buying a new or nearly new vehicle and scrapping an old one.
• Company shareholders: Cannot leave the company for lack of dividends until December 31, 2020.

Words worth knowing

Aval (guarantee)

A commitment by the State to pay a debt if the borrower cannot.

Moratoria (moratorium)

A temporary pause or deferral of debt payments.

Fijo discontinuo (fixed-term discontinuous worker)

A permanent worker who is only called in when there is work, for example during the tourist season.

Achatarrar (scrap)

Permanently deregistering an old vehicle for destruction or recycling.

SEPI

Sociedad Estatal de Participaciones Industriales, the state-owned company that manages government stakes in companies.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries