Entrepreneurs and small and medium-sized enterprises who had to limit or close their operations due to the government's crisis measures issued due to the spread of the coronavirus could be helped by a program called "COVID II." However, apart from large enterprises, the program unfortunately does not apply to entrepreneurs doing business in the territory of the capital city of Prague, because it is financed from structural funds. Support for Prague tradesmen and entrepreneurs should probably still be discussed - so it is possible that a program will still be announced for them as well.

Entities that meet the conditions can receive operational funding through support through this program. Support must be requested from the Česko-Moravská záruční a rozvojové banka (ČMRZB) on the specified forms and together with the required attachments, and always within the specified time period (in so-called rounds). Individual rounds are announced and closed with a notice on the website www.cmzrb.cz. The first round was until April 3, 2020, the interest was huge.

What can be gained?

Support from the program can be provided in the form of a loan guarantee and a financial contribution for the payment of interest or in the form of a bank guarantee for the loan.

ČMRZB can provide a guarantee for loans from cooperating banks up to 80% of the principal amount, the amount of the guaranteed loan is limited to the amount of CZK 15 million (the loan will be provided by one of the cooperating banks), the duration of the guarantee is up to 3 years, a financial contribution to cover interest is also possible up to the amount of CZK 1 million (other conditions for determining the amount of the contribution are determined by the ČMRZB).

In the form of a bank guarantee, the loan can be secured up to 70% of the principal of the guaranteed loan, the amount of the guaranteed loan should be from 4 million CZK to 40 million CZK and the duration of the guarantee up to 7 years (subject to fulfillment of other conditions). Special rules apply to so-called special supported activities (which include, for example, processing of calamite wood, Favored regions, Business centers, Family businesses and Material and energy utilization of waste).

What can be financed from the program?

Expenses (funds from the loan) must be spent on the operating expenses of the support recipient (the financial contribution for interest can, of course, only be used to pay the interest on the loan).

Second round

The second round should be launched on April 20, 2020. The above is based on the conditions of the first round of the program. It is apparently not excluded that some conditions or criteria could be changed or modified in the second round.