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Coronadvice 10 - Possibilities of Financial Support For Small and Medium sized Enterprises at the Time of Coronavirus - Overview to 25.3.2020

We closely monitor state and other support measures available to SMEs. We also communicate with the Ministry of Industry and Trade to have the most up-to-date information for you. Below is an overview of the various "packages" available to help entrepreneurs:

ANTIVIRUS PROGRAM
As a result of the coronavirus pandemic, the government has approved an employment protection program through which the Czech Labour Office can pay money to companies to prevent them from having to lay off employees. Employers whose activities will be jeopardized by the spread of the disease will be provided with a full or partial wage compensation contribution by the labour office. This applies both in the event of an obstacle on the side of the employee (quarantine order), or an obstacle on the side of the employer (closure of the establishment as a result of a government order). In order to receive a contribution, it must be shown that the obstacles have arisen as a result of the COVID-19 pandemic. You can read more about Antivirus here. You will find out which item of this program will be directly related to tour operators in the next Coronadvice probably tomorrow.

COVID II
The Czech-Moravian Guarantee and Development Bank (CMZRB) will provide entrepreneurs with guarantees for commercial bank loans, and contribute to interest payments. This program should most likely be adjusted so that CMZRB will guarantee loans from CZK 10 thousand up to CZK 15 million. The guarantee is likely to be up to 80% of the commercial loan. The applicant will be able to use a financial contribution of up to CZK 1 million to make interest payments. Expected period of liability will be 3 years. The loan can be used for operating expenses such as wages, rent, energy, supplier-customer invoices, materials, supplies, etc. Learn more about COVID II here.

PLAN TO HELP TRADESMEN
On 20 March 2020, a draft law on the waiver of compulsory pension payments for self-employed persons for 6 months was sent to the interdepartmental comment procedure; on 24 March 2020, this law was confirmed by Parliament. You can read the press release here.