Small business bonds, Palma. | Jaume Morey

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Palma City Council is preparing to launch bonds to help small businesses and the Department of Economic Promotion & Employment is hoping to launch the first batch as soon as the shops reopen.

Bonds have already been distributed in other Municipalities in Mallorca, much to the delight of consumers and traders and according to Councillor Rodrigo Romero, "they may also be given out to Palma residents in the summer and at Christmas and New Year.”

Bonuses

The idea is that each resident receives a two or three bonuses a yearto boost their incentive to buy from small local shops.

The date for the launch of the bonds will be decided once reactivation is in sight, but we will have to wait and see how much we can allocate to this initiative,” says Councillor Romero.

The City Council says it will also launch an advertising campaign to encourage people to buy from small shops.

"We are very concerned about small businesses," says Councillor Romero. “PalmaActiva is receiving a lot of requests for advice about company layoffs in the Computer Sector as well as in bakeries and fruit shops. Neighbourhood stores haven’t experienced as severe a drop in sales as businesses in the centre of town and many of them have signed up for home delivery to increase sales.”

Aid

Palma City Council is also in the middle of finalising agreements with the Balearic Government and the Consell de Mallorca to coordinate a direct aid plan for small businesses.

Since last week more than 600 companies have received help from the Department of Economic Promotion & Employment's Line 1, which has a budget of 1.42 million euros. Each business received an average of 2,500 euros.

Aid from line 2 was directed to businesses that kept their staff or rescued them from ERTE and has a budget of 400,000 euros.