SUMMARY OF THE AID VALENCIAN COMMUNITY FOR SELF EMPLOYED COVID – 19

Decree 44/2020 dated 3 April 2020, establishes a direct emergency aid scheme for self-employed of the Community of Valencia, who have been forced to suspend their business activity because of Covid-19.

This aid approved by the aforementioned decree, is addressed to self-employed of the Community of Valencia, including working members of associated work cooperatives, in order to compensate them all for the decrease of incomes as a consequence of the declaration of the alert state.

People who can benefit from this aid should meet the following REQUIREMENTS: (art. 3)
a) Having been registered, ceaselessly,  at the Special Regime for Self-employed Workers for, at least, the period 31 December 2019 to 14 March 2020.
b) Having been forced to suspend the business activity as a result of the measures taken by Royal Decree 463/2020 dated 14 March, or, in case of the business activity has continued, when invoicing for previous month to the application of the aid, has been reduced in a 75% with comparison to the average invoicing of previous semester to the declaration of the alert state. If the applicant has not been registered during the six calendar months required, the period of activity will be taken to value the situation.

1. c) Having the tax address at the Community of Valencia.

Self-employed excluded are those who:

(a) By the 14 March 2020, were beneficiaries of an unemployment benefit or any benefit for the protection by cessation of activity.
(b) They were employed on or after 14 March 2020.
(c) They obtained a net return of their activities higher than 30,000 Euros during 2019.
(d) They fall into any of prohibition under pursuant General Law on Subsidies, in particular into any of those listed in Articles 13 (2) and (4). (There are many references to this law, so we have not included them).

This aid will be not granted to the following sectors:
a) Fishing and aquaculture, ruled by Council Regulation (EC) No. 104/2000.
b) Primary production of agricultural products.
c) Aid granted to companies involved in the processing and marketing of agricultural products.
d) Activities involved in exports to third countries or Member States.
e) Aid granted for the use of domestic products rather than imported.

As for the AMOUNT of the aid (Art 4), this will be 1,500 Euros for people who have been forced to suspend their business activity by Royal Decree 463/2020, and 750 euros for rest of applicants. It has been established an overall maximum amount of €57,500,000 of the Community of Valencia’ funds (without prejudice to an extension with State or European resources).

The CRITERIA FOR THE AWARD, UNTIL THE CREDIT IS EXHAUSTED (art. 7), will be THE PRESENTATION OF THE APPLICATION, which IS NOT considered presented until all documents required are provided. In case of applications presented at the same time, priority will be given to applications submitted by people with functional diversity and, failing this, by women.

PERIOD (art. 5) to present applications starts at 9 a.m. on 8 April 2020 and ends at 9 a.m. on 4 May 2020.

Application has to be presented electronically at the Community of Valencia’ website (Generalitat Valenciana or gva), through a specific procedure established named “EAUCOV 2020 Extraordinary aid for self-employed Covid-19”.

Digital signature is requested for the electronic process or a different certificate accepted by the Community of Valencia’ website. If digital signature is not available, a representation must be given to a third person who had it (such authorization should be presented).

Application should be followed by these DOCUMENTS (article 6):

1. Certificate of status in the census of economic activities of the State Treasury Administration Department.
2. Personal statement related to the requirements.
3. Direct debit form.
4. Representative’s authorization.
5. Personal statement of the minimum aid granted to the applicant during the two previous tax years and during the current tax year, as well as other state aids for the same risk finance measures.

Only one application per person will be accepted. By the presentation of the request, except expressly objection (in which case supporting documentation must be provided), the Valencian Employment and Training Service (“LABORA”) is authorized to collect information regarding the following:

1. Identity of the applicant. In its case, of the representative.
2. Working life, certified by the Social Security Treasury.
3. Positive certificate of being in compliance with tax obligations and with the Social Security.
4. Certificatie from the State Treasury Administration Department in relation to earnings from economic activities, fiscal address and any other requirement demanded to the beneficiaries.

Reviewed the applications, a report will be issued (article 7) where it will be stated that the requirements for the granting of the aid have been met, and the proposal of granting will be issued, by the person in charge of the Autonomous Secretariat of Employment or agency in which it delegates, and addressed to the competent agency to resolve it.

Term to resolve and notify the resolution (article 8) will be three month from the presentation of the application at the electronic headquarters of the Community of Valencia. If that term elapses without a decision has been issued or notified, administrative silence will occur, and the request will be understood as rejected.

The resolution will determine the amount granted and it will include, in such case, the conditions, obligations and determinations to which the beneficiary will be subjected.

Appeals against the resolution are contained in article 8.5.

Once the granting resolution is obtained, the amount of the aid will be paid in one go (article 9).

In additon to the obligations contained in the General Law on Subsidies, the beneficiaries of these aid have the following DUTIES (article 10):

1. Maintain the self-employed activity for at least three month, counting from the day the suspension of the activity expires.
2. Provide as much data and information, in any issues related to the granted subsidies, LABORA may require.
3. Communicate to LABORA the application or granting of any other subsidies or aids with the same purpose, as well as incidences or variations in relation to the subsidy granted.
4. Fulfill with the transparency obligations in case of having received during one year any public aid or subsidy for a higher amount than000 euros. The beneficiaries must advertise on their website (if they have) the obtaining of the subsidy.
5. Submit to actions of financial control.

There are cases (article 11) with obligations to pay back the amounts received, as well as the request of interest on arrears, those contemplated at article 37 of the General Law on Subsidies 38/2003 and many other of the Law 2/2015 of Transparency, Good Governance and Citizen Participation of the Community of Valencia. In particular, in case of falseness of the personal statements presented, and in case that the loss of profit is less than the subsidy granted.

This subsidy is incompatible (article 12) with any other aid, subsidy, income or economic resource for the same purpose, but bonuses of the Social Security contributions and the State Extraordinary benefit for self-employed affected by the crisis caused by Covid-19.