General national economic measures
*company tax relief
*unemployment relief for freelance workers
*mortgage payment holiday
-An extraordinary allowance is provided for self-employed workers affected by the suspension of economic activity.
-The use of temporary employment schemes has been simplified and access conditions to them have been extended. In addition, employers will benefit from certain exemptions of social security contributions during the period of application of the temporary employment adjustment scheme.
-€14 billion in deferred tax expenditure for 6 months for SMEs and the self-employed.
-About €10 billion moratorium on mortgage loan payments on primary homes for those identified as economically vulnerable, facing extraordinary difficulties procuring payment as a result of the COVID-19 pandemic.
-€100 billion in credit guarantees programmes for companies and the self-employed to help meet the financing needs derived, among other things, from payments of wages, invoices, current needs or other liquidity needs, including those derived from maturities of financial or tax. 80% guarantee for small and medium sized businesses, and 70% guarantees for larger companies.
National measures specific to the music sector or to culture in general
The music sector can benefit from the above-mentioned general measures.
On top of this, specific measures are being introduced for the cultural sector:
Companies and self-employed in the cultural sectors have access to the first tranche (€20bn) of the €100bn credit guarantee programme for companies and self-employed mentioned above.
Interested companies and freelancers may request the guarantee for their operations until September 30, 2020. To do this, they must contact the financial entities with which the Official Credit Institute (ICO) has signed the corresponding collaboration agreements.
More information here.
On May 5th, the government presented a €76m plan for the recovery of its cultural and creative sectors - some of the measures introduced include:
-extraordinary access to unemployment benefit for employees, with more flexible criteria.
-extraordinary access to unemployment benefit for freelancers and self-employed who have lost their revenues, for a period of up to 180 days depending on the period of employment during the previous year.
-€38,2m grant for the performing arts and music sectors.
-payout of incurred eligible expenses related to publicly funded cultural activities and projects affected by total or partial cancellations or postponements due to COVID-19.
-€20m credit fund for cultural and creative SMEs, which in turn is meant to mobilise at least €40m in credits for each sub-sector, including music, via loan guarantees schemes. (more info here)
To mitigate the impact of the crisis on the cultural sector, the city of Barcelona has put in place a series of ten measures (€1m special subsidy, advance payments for programmed shows with companies and artists with programmed shows postponed to receive down payments, etc.). See more information here.
Barcelona is also calling on the Spanish and Catalan governments to implement measures to help the cultural sector. The Spanish government is urged to cut VAT on culture and in the sphere of education to 0%, at least until December 2020. The Government of Catalonia is also urged to reach an agreement with the Catalan Finance Institute to open up a line of micro credits of up to €20,000 euros at zero or low interest rates, to meet the needs of SMEs in the cultural sector.
Among other measures, a €10 million interest loan line for cultural companies will be proposed, the non-revocation of grants already granted and the rescheduling of planned activities. More information here.
- On 29th April, the Spanish government announced a de-escalation plan in three phases (see here).
Of particular interest for the music sector:
(Phase 1) From 11th May onwards, in the areas where conditions are most favourable, people will be able to pick up goods which they have ordered from shops.
(Phase 2 - late May onwards) Citizens will be able to enter the inside of bars and restaurants, with a limit of 30% of capacity. Cinemas, theaters and auditoriums will also reopen with a similar limit on capacity, as well as monuments and exhibition centers. At this point, cultural events such as concerts will be possible, albeit with a third of their usual capacity. At outdoor events, up to 400 people will be allowed, provided they are seated.
(Phase 3 - mid-June) Shoppers will be able to enter establishments, but there will be a limit on capacity and they will have to observe social distancing of two meters.
Measures taken by local collecting society organisations
- The collecting society launched grants (SGAE-Corona funds) of up to 3.000€ per author to cover their losses in the coming months. The grant's total is 15 million euros.
- Food delivery service for members over 70 years old living by themselves or living with a dependent
- Immediate loans of 30% of the last semester's declaration (if the amount earned is in between 3.000 and 10.000€)
More information: http://www.fundacionsgae.org/es-es/sitepages/AyudasDetalle.aspx?i=126
- The performer's collecting society launched grants of up to 2.000€ per member.
- The budgeted distribution for April 2020 was increased by 31% from 10 to 13.1 million euros and they expect to increase 2020's total distribution by 11%.
More information: https://www.aie.es/comunicado-aie-24-marzo-2020/
Other music funds available
None so far.
Support from online services
No specific support for Spain so far. For other initiatives by online services, click here.
Support from national radio and other media
Radio 3 stopped the regular schedule and substituted it with playlists. Some of the hosts are streaming their live shows from home through Instagram and doing live interviews with bands from home.
Social media and other campaigns to promote music during the crisis
- #HoyMeComproUnDisco is a campaign launched by Spanish independent music companies association UFi with the aim of helping independent labels and record stores which at the moment have seen their activity stop almost suddenly due to the Covid-19 crisis. The campaign aims to reach the audience and raise awareness that, in order for record labels and stores to continue to exist after this exceptional situation, it is necessary that the audience support them by ordering records these days. It is important to say that it has been communicated that the orders will be sent when it is safe to do so. http://ufimusica.com/campana-hoymecomproundisco/
- BMAT calls for radio stations to play music from artists whose shows have been cancelled. The initiative called 'The Show Must Go On Air' aims to encourage broadcasters to support artists who had to cancel shows in Barcelona due to COVID-19. The initiative calls on all broadcasters who play or use music to opt for the songs of those who’ve been cancelled.
Local programmes supported by EU funds covering music
None so far
Business and other expected losses
Out of a research study conducted with 70 independent labels in Spain the estimated losses are:
Physical Sales: 8.077.500€ (all independents in Spain)
Streaming: 909.750€ (all independents in Spain)
Performance Rights: 1.121.500€ (all independents in Spain)
Live Music: 24.305.000€ (all independents in Spain)
For more info:
UFi - Unión Fonográfica Independiente - http://ufimusica.com/esmusica-propuesta-de-medidas-al-gobierno-para-ayudar-al-sector/ - hola (@) ufimusica.com