COVID-19 support measures and deadlines extended

Automatic summary, not yet reviewed

1. The deadline to grant public guarantees to self-employed workers and companies is extended to June 30, 2022: up to €100 billion under Royal Decree-Lawroyal decree-law A rule with the force of law that the Government passes because it is urgent. It applies from its publication, but the Congreso must validate it within 30 days or it lapses. 8/2020 and up to €40 billion under Royal Decree-Law 25/2020.
2. Losses from 2020 and 2021 do not count toward dissolving a company for losses, and until June 30, 2022 insolvent debtors are not required to file for bankruptcy, and courts will not accept involuntary bankruptcy petitions filed since March 14, 2020.
3. The screening of direct foreign investments by residents of the European Union and the European Free Trade Association is extended to December 31, 2022 for listed Spanish companies or unlisted ones with investments above €500 million.
4. The autonomous communities and the cities of Ceuta and Melilla may hold back funds to pay possible pending appeals against denials of the COVID Line of direct aid, and must return the remaining unspent balance before June 30, 2022.
5. On gas, last-resort suppliers must supply gas for up to six months to essential services without a valid contract, and the gas system will act as guarantor of amounts owed due to the cap on the last-resort tariff. In addition, electric vehicle charging may no longer be included in the exclusive fuel supply contracts of service stations.
6. Coal miners doing mine closure and restoration work can access social benefits if their employment ends between January 1, 2019 and December 31, 2025. Several works to protect and restore the Mar Menor lagoon are also declared of general interest.

Who it affects

• Self-employed workers and companies needing State-backed financing: They can request guarantees until June 30, 2022.
• Companies with pandemic-related losses: Losses from 2020 and 2021 do not count toward dissolution, and they have more time before bankruptcy.
• Foreign investors from the EU and EFTA: Their investments in large or listed Spanish companies still require authorization until December 31, 2022.
• Last-resort gas suppliers and essential services: They must keep supplying essential services without a contract for up to six months and have a payment guarantee.
• Coal mining workers: They can access social benefits if they work on mine closure and restoration through 2025.

Words worth knowing

Aval (guarantee)

A guarantee: if the borrower does not repay the loan, the State is liable.

Concurso de acreedores (bankruptcy proceeding)

A court process for a company or person that cannot pay its debts.

Disolución de sociedades (company dissolution)

The legal closing of a company, distributing what remains among its shareholders.

Comercializadora de último recurso (last-resort supplier)

A company that sells gas at a regulated price to customers without a contract with any other supplier.

Interés general (general interest)

A designation that allows the State to directly plan and carry out certain public works.

royal decree-law

A rule with the force of law that the Government passes because it is urgent. It applies from its publication, but the Congreso must validate it within 30 days or it lapses.

decree-law

A rule with the force of law that the Government passes because it is urgent. It applies from its publication, but the Congreso must validate it within 30 days or it lapses.

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