Canary Islands Government Supports Business Recovery with COVID-19 Aid

Overview

• The Canary Islands government has approved a direct subsidy of over 2.4 million euros to Seit-52, S.L.
• This support is part of the COVID-19 financial aid program financed by Spain.
• The aid aims to help businesses recover from the economic strains caused by the pandemic, especially in sectors such as agriculture, fisheries, and other vulnerable industries.

Legal Framework and Conditions

• The aid was granted under a specific legal framework that allows for direct grants instead of public calls.
• This approach recognizes the urgency and unique impact of COVID-19.
• Seit-52, S.L., received the full amount upfront, with the requirement to justify the expenditure and demonstrate the maintenance of economic activity until June 2022.

Legal and Administrative Process

• The decision followed a series of legal steps, including:
  • Initial approval
  • A failed appeal by the company
  • A court ruling that restored the aid
• The government emphasizes strict controls over the funds, including audits and compliance checks to prevent misuse.

Conditions for the Firm

• The firm must meet several conditions, such as:
  • Not distributing dividends
  • Maintaining its activity
• These conditions are necessary to retain the grant.

Broader Context

• This measure reflects Spain’s broader effort to bolster businesses and secure employment during recovery.
• It demonstrates how regional policies adapt to the ongoing economic challenges posed by COVID-19.

"The aid is part of our strategic effort to support vulnerable sectors and ensure economic resilience in the region."