Liquidity Measures
COVID II Programme
Government Measure
Eligible companies may apply for operating loans from commercial banks with a value from CZK 10k (approx. €366) up to CZK 15m (approx. €548.948k) and for financial aid to cover interest payments.
The Czech government guarantees 80% of the loan.
Financial aid will be provided in respect of interest payments for up to CZK 1m (approx. €36.597k).
The guarantee period is up to 3 years.
The guaranteed commercial loan must be used solely to make operating cost payments, e.g. salaries, rent, utilities, supplier/customer invoices, material and supplies, etc.
Financing may be made available through commercial banks (no specific list available).
Financing to be agreed with the respective commercial bank and the application for a guarantee to be submitted to the Czech-Moravian Guarantee and Development Bank.
Eligibility
Czech Republic based SMEs1 that:
- are operating in any sector;
- had to limit/close operations due to the measures implemented in the fight against the coronavirus pandemic;
- will use the guaranteed commercial loan solely to make operating cost payments, e.g. salaries, rent, utilities, supplier/customer invoices, material, supplies, etc; and
- have operating costs relating only to activities outside Prague which requires funding to be allocated to such costs.
For more information on eligibility please here (available in Czech).
1In order to qualify as a SME, a company must jointly fulfil the following two criteria: 1) have a yearly employee average number below 250 and 2) have a yearly net turnover below €50m or an annual balance sheet total (total assets) below €43m, as per the last approved financial statements. Total assets include fixed assets, current assets and prepaid expenses. An enterprise acquires / loses the status of a SME if the number of employees and the financial limits are met / not met in two consecutive accounting periods.
Supervising Authority
The Ministry of Industry and Trade
The Czech-Moravian Guarantee and Development Bank.
Availability
The first round of applications closed on 3 April 2020.
Next round may be announced pursuant to a decision by the Ministry of Industry and Trade.
COVID III Programme
Government Measure
Eligible businesses may apply for support in the form of state guarantees for operating loans provided by commercial banks.
The programme is currently in development – details will be announced shortly.
Eligibility
The programme is currently in development – details will be announced shortly.
Supervising Authority
The Ministry of Industry and Trade
TheCzech-Moravian Guarantee and Development Bank.
Availability
The programme is expected to be launched in the second half of May.
COVID Prague Programme
Government Measure
Eligible companies and self-employed persons may apply for operating loans from commercial banks with a value up to CZK 15m (approx. €548.948k) and for financial aid to cover interest payments.
The Czech government guarantees 80% of the loan.
Financial aid will be provided in respect of interest payments for up to CZK 1m (approx. €36.597k).
The guarantee period is up to 3 years.
The guaranteed commercial loan must be used solely to make operating cost payments, e.g. salaries, rent, utilities, supplier/customer invoices, material and supplies, etc.
Financing may be made available through commercial banks (no specific list available).
Financing to be agreed with the respective commercial bank and the application for a guarantee to be submitted to the Czech-Moravian Guarantee and Development Bank.
Eligibility
Czech Republic based SMEs that:
- are operating in any sector;
- had to limit/close operations due to the measures implemented in the fight against the coronavirus pandemic;
- will use the guaranteed commercial loan solely to make operating cost payments, e.g. salaries, rent, utilities, supplier/customer invoices, material, supplies, etc; and
- have operating costs relating to activities in Prague which requires funding to be allocated to such costs.
For more information on eligibility please see here (available in Czech).
Supervising Authority
The Ministry of Industry and Trade
The Czech-Moravian Guarantee and Development Bank.
Availability
The first round of applications closed on 21 April 2020.
[Note: it is not sure whether there will be a second round of applications. At this moment, it is not presumed.]
COVID Plus Guarantees
Government Measure
Exportní garanční a pojišťovací společnost, a.s.
("EGAP”) may provide guarantees for the repayment of loans (for operating expenses, working capital or innovation initiatives) to exporters, manufacturing and commercial enterprises.
EGAP may insure direct and indirect guarantees.
Eligibility
Applies to companies that have more than 250 employees and whose exports represent at least 1/5 of their total sales.
Supervising Authority
Ministry of Finance, Ministry of Industry and Trade, and EGAP.
Availability
As of 29 April 2020..