The Spanish Ministry of Digital Transformation has announced an increase in funding for the Kit Digital program, a key initiative under the European Recovery Plan aimed at enhancing the digital capabilities of small enterprises.

The updated funding will provide an additional €172 million specifically for self-employed individuals and microenterprises with up to three employees, bringing the total allocation for this segment to €1.432 billion due to heightened demand.

This funding boost responds to the success of the program, which has recently allowed for the inclusion of a laptop or equivalent device valued at a maximum of €1,000.

This change contributed to a surge in uptake, with the program's recent data indicating that over 650,000 digital kits have been processed, aiming for a final commitment of 676,000 digitized SMEs in alignment with the European Commission's expectations.

The reallocation of funds has resulted in a significant reduction in support for medium-sized enterprises (SMEs) with 50 to 250 employees.

The budget for this segment, which originally amounted to €350 million, has been slashed by €100 million, a decrease of nearly 30%.

This cut has been the subject of criticism from sectoral organizations, which argue that it undermines the program's overall effectiveness for larger SMEs seeking transformation in areas such as advanced cybersecurity and artificial intelligence.

Sources from Red.es, the public entity managing the program, indicate that the self-employed segment is currently the largest and most demanding portion of the Kit Digital initiative.

Red.es intends to exhaust the program's budget and has indicated that further budgetary expansions may be considered in the coming months if demand continues.

The reshuffling of funds also includes the reallocation of €72 million previously awarded to companies that have declined or allowed their bonuses to lapse, an issue that has plagued the program in its initial years.

The introduction of the Kit Digital for medium-sized businesses was a recent decision by the government aimed at enabling these companies to advance in digital technologies.

However, some organizations have expressed concerns that a cap of €29,000 for subsidies imposes limitations on larger projects that companies with more substantial needs require.

Under the new law on payment delays, receiving subsidies exceeding €30,000 is conditioned by criteria that deter small to medium enterprises from applying for smaller amounts, thus creating barriers for substantial digital projects for companies with 200 employees or more.