The covid19 crisis has had a huge impact on many, amongst the affected: freelance and SME’s. That is why, The Governing Council of the Community of Madrid has decided to reduce the quotas for freelancers and SMEs who have suffered the consequences of this crisis during March and April. They have approved an immediate liquidity fund and also to extend the direct aid programme to €3,200.
This agreement aims at alleviating the impact of the crisis and to avoid business from having to close. The news has been announced by Ignacio Aguado, Vice President of the Community of Madrid. He said, “we hope it can help to continue your business opened because our only goal is to help you generate wealth, employment and investment”. In addition to this agreement, there will be a mobilization of around €220 million allocated to aid (€68.2 million) and financing through guarantees (€150 million).
It is estimated that more than 71,000 will be beneficiated from this aid, the average amount of it will be approximately€534. This amount will be allocated to individual freelance and freelance with employees, including cooperatives partners, labour companies and commercial companies registered in the Spanish Social Security Regime and the Self-employed Regime (RETA). The objective is to cover the basic needs thanks to the amount that the self-employed will receive of the monthly Social Security fee.
What is more, the support for self-employed has been widen to €3,200. That amount will be given immediately and in a single payment. The aid, which shall correspond to the payment of 12 monthly payments of the minimum social security contribution base. It shall be granted on a first-come, first-served basis and the self-employed person may use it as he considers. In addition, €12 million will be available to Avalmadrid with the aim of creating a specific fund for Covid-19 and to address the risk of granting guarantees. Therefore, the reciprocal guarantee society will act as a guarantor for those who need access to credit financing, for both new self-employed and SMEs. In addition to this measure, an aid with a value of €8 million will be launched so that those interested in accessing financing through Avalmadrid have the costs of aid operations rewarded.
Regarding the water bill, Canal de Isabel II will apply a reduction for those self-employed affectedby the Covid19 crisis. This is a reduction of approximately 79%. So that, instead of paying for consumption of 25 cubic meters every two months (€41), it will be paid now less than €9. This aid directly concerns self-employed receiving the extraordinary performance benefit for those affected by the declaration of the State of Alarm and their income do not exceed 2.6 times the Spanish Public Multi-Effects Income Indicator (IPREM). This aid will reached approximately 50,000 workers so Canal de Isabel II will allocate €1M. This measure shall be developed during the State of Alarm and in any case, for a maximum period of three months from the beginning of that situation.