Canary Islands COVID-19 Business Support Funds Verification Procedures

Overview

The Canary Islands government has announced new procedures to verify the proper use of COVID-19 business support funds.

Following the regulations set out in Decreto ley 6/2021, recipients of grants must now submit detailed documentation within ten days—either through a digital portal or in written form—showing how the money is allocated.

Purpose of the Grants

• Designed to help freelancers and small businesses impacted during the pandemic.
• Focus on:
  • Paying debts to suppliers
  • Reducing bank loans
  • Covering unavoidable fixed costs

Grant Details

• Vary based on the size of the business and the degree of income decline during 2020.
• Some awards exceeding €100,000 require an auditor’s report for justification.

Enforcement and Compliance

• Authorities will scrutinize each application for compliance.
• Failure to provide the required paperwork could lead to:
  • Loss of funds
  • Recovery processes

Purpose of New Measures

"This move aims to ensure transparency and accountability, preventing misuse of emergency aid funds, which have been crucial for supporting the local economy during challenging times."

• Reinforces the government’s commitment to responsible resource management.
• Offers reassurance to residents about proper oversight of public funds allocated in response to the pandemic’s economic impact.