URGENT MEASURES LAUNCHED FOR INNOVATION IN COMPANIES, MOBILIZING UP TO €500 MILLION

IMPULSO would like to inform you that the Ministry of Science and Innovation, through the CDTI, is urgently launching EXTRAORDINARY MEASURES to support the continuation of high-value-added activities and the creation of capabilities to reactivate the economy in the field of business innovation. The goal is to mitigate the slowdown in activity, protect employment in the field of R&D&I, and maintain competitiveness in innovative activity.

These measures can be implemented immediately, as they are applied to CDTI instruments already in operation. The total volume of aid mobilized could reach €500 million.

Below is a summary of these measures:

EXEMPTION FROM GUARANTEES (GREAT OPPORTUNITY FOR NEW APPLICATIONS)

The CDTI will apply a reduction in the guarantees required for all R&D&I projects (not only Cervera projects in cooperation with technology centers) carried out by SMEs and Midcaps — independent companies with up to 1,500 employees — that are approved on or after March 14, 2020. Thanks to this measure, SMEs and mid-cap companies will be exempt from providing guarantees, provided that the company/project match meets the minimum financial solvency required by the CDTI.

This extension of the guarantee exemption applies to all CDTI partially repayable aid: R&D projects (including CIEN and Technology Cooperation Projects), Cervera R&D Transfer Projects, and LIC and LIC-A Innovation Lines. It is expected that a total volume of aid without guarantees of close to €500 million can be mobilized.

Thanks to this measure, SMEs and mid-cap companies will be exempt from providing guarantees when they meet the minimum financial solvency required by the CDTI, within the following limits:

• Exemption from guarantees up to €500,000 for small companies.
• Exemption from guarantees up to €1,000,000 for medium-sized companies.
• Exemption from guarantees up to €3,000,000 for mid-cap companies.

When the R&D&I activity is related to products considered to be emergency goods by the Government in connection with COVID-19, the reduction in guarantees will be extended to the following limits:

• Exemption from guarantees up to €1,000,000 for small companies.
• Exemption from guarantees up to €2,000,000 for medium-sized companies.
• Exemption from guarantees up to €3,000,000 for mid-cap companies.

Currently, these emergency products are of the types referred to in Order SND/233/2020 of the Ministry of Health, dated March 15: Type II and IIR surgical masks; FFP2 protective masks; FFP3 protective masks; COVID-19 PCR diagnostic kits and their consumables; rapid diagnostic kits (antigen detection); swabs; protective goggles; nitrile gloves, powdered and powder-free; disposable and waterproof gowns; hydroalcoholic solution (biocide and cosmetic) and its raw materials; invasive mechanical ventilation (IMV) devices; IMV equipment consumables; medical alcohols; chlorhexidine.

This list may be expanded if new products are identified for inclusion in this category.

FAST TRACK FOR THE APPROVAL OF CDTI PROJECTS (NEW)

For as long as the emergency situation related to COVID-19 and its effects on economic activity continues, the CDTI will implement a fast-track process for all submitted projects, with the aim of helping companies maintain strategic investments and attempting to mitigate, at least in part, the negative impact on skilled employment. The CDTI will continuously evaluate R&D&I projects supported through partially repayable aid and will propose increasing the frequency of its Board of Directors meetings, held remotely, in order to speed up the approval process and the granting of aid as much as possible during this period of economic slowdown.

This fast track will also give priority to projects related to products considered to be emergency goods under the Ministry of Health Order mentioned above.

UPDATES TO THE DIRECT EXPANSION LINE (LIC-A) (THROUGHOUT SPAIN)

These measures are complemented by the extension of the Direct Expansion Line (LIC-A) to THE ENTIRE NATIONAL TERRITORY, in accordance with the regional aid map, starting in April. Its purpose is to grant aid for initial investment and initial investment in favor of a new economic activity, in order to boost the growth of innovative companies, aimed at individual companies carrying out an investment project.

The DEADLINE FOR SUBMITTING APPLICATIONS for this aid is permanently open.

MORE FLEXIBLE JUSTIFICATION PERIOD (ONE MORE MONTH)

Another measure adopted by the CDTI is the extension of the justification period for partially repayable aid and subsidies, extending these deadlines by one month for projects whose deadline falls during the period in which the state of emergency remains in effect.

This measure applies to all aid of the following types:

• R&D projects, including CIEN, technology cooperation projects, etc.
• Cervera R&D Transfer Projects.
• FEMP projects.
• Innovation projects (CDTI direct line and CDTI expansion line).

03/18/2020