The Junta de Andalucía will allocate 150 million euros to an urgent program of financial aid to small and medium-sized industrial companies that seek to deal with the serious effects of the economic crisis on this sector, especially vulnerable to the widespread and persistent reduction of credits for productive activities.
This new financial injection, which will be articulated through calls for soft loans in the long term and competitive competitive regime, is the main initiative that establishes the law Decree financial aid for industrial SMEs and for agricultural production affected by natural adversities , approved on Tuesday by the Government Council and announced at a press conference by the president of the Board, Susana Díaz.
According to the Board, the norm, which also includes extensions of the terms of the Youth Employment Bond and autonomous work aids, adopts the Decree-Law formula for the situations of urgent need that motivate it.
In relation to industrial SMEs, among the data that support the need for rapid action, highlights the greater incidence of the crisis on the Andalusian industrial sector, with a reduction of 19.6 percent in its business fabric, and the persistence of the fall of credit to productive activities in Spain, where only 40 percent of SMEs currently get the loans they request.
To alleviate these financing difficulties, the program will make available to Andalusian industrial SMEs soft long-term loans and interest at below market prices for a total value of 150 million euros, co-financed by the European Regional Development Fund (Feder ).
The first call, which is included in the Decree-Law itself, is endowed with a maximum amount of 58 million euros for the year 2014. The deadline for submission of applications will be three months from the entry into force of the standard. The following calls will be made through orders from the Ministry of Economy, Innovation, Science, and Employment.
The program is aimed at SMEs in the industrial sector with social and tax domicile in Andalusia, legal form of business or cooperative society, a workforce equal to or less than 50 workers and at least four years of continuous activity, among other requirements.
Loans will be linked to business plans that companies must define according to their activities and financial, commercial and technological capabilities- Vicvirtual. They cannot exceed 200,000 euros and must provide a capital increase of at least 25 percent of the total credit. Neither will they exceed 25 percent of the company’s own resources at the time of its request. The terms are established in five or seven years.
The calls will be processed and resolved in a competitive concurrency system, that is, based on the comparison between the applications submitted and the hierarchy of the same based on the evaluation criteria. These are divided into three blocks: characteristics of the business plan, corporate social responsibility, and solvency of the applicant company.
In relation to the business plan, the preferred sectors are prioritized, such as aerospace, agroindustrial, biotechnology, energy and environmental, as well as companies located in technological spaces.
In terms of social responsibility, the inclusion of specific plans for equality between men and women and reconciliation of work and family life, as well as the location of investments in municipalities with low economic activity, will be assessed. Companies that exceed 5 percent of staff with disabilities and those with more than 10 percent of the social capital divided by more than 20 percent of the workforce will also be scored.
Business plans may include, among other chapters, acquisition of land; service rush; urbanization and shipbuilding works; provision of equipment goods and facilities and computer programs; planning, engineering and facultative management work, and acquisition of patents and exploitation licenses.
The loans will be compatible with other financial resources for the same purposes that come from administrations and private entities, both national and European Union and other international organizations, as long as the amount of the same does not exceed the costs of the incentivized projects.
Youth bonus and self-help
Together with the program to help SMEs, the Decree-Law includes two extensions of terms referring to the Youth Employment and Support and Promotion of Autonomous Work programs. In the first case, the period for the formalization of the contracts foreseen in the program is extended until March 31, 2014. In addition, it is established that the beneficiary of the bonus will retain the right to the benefit for three months in case the first contractual relationship is terminated if he finds another job.
The Young Employment Bond, which has a budget of 18 million euros in the 2013-2014 period and a forecast of 3,700 beneficiaries, is aimed at university graduates, Vocational Training of medium or higher grade and graduates in Compulsory Secondary Education from of the Second Educational Opportunity Program. It is an aid of 4,800 euros for children under 35, distributed in 12 monthly installments of 400 euros, which becomes effective when a labor contract is signed for one full-time year.
With regard to the Program for the Support and Promotion of Autonomous Work, the Decree-Law extends the validity of its line of incentives for the promotion of innovation in autonomous work until the end of 2014, in order to meet the high volume of requests received. This measure includes three types of aid: 2,000 euros for the establishment of the project, up to 8,000 for its development and 3,000 euros for each full-time indefinite contract (up to a maximum of three) by the self-employed employer.
On the other hand, the Decree-Law also includes a regulatory amendment so that the two members of the Council for the Defense of the Competition of Andalusia no longer have the status of senior officials and those of exclusivity and absolute dedication.