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Coronavirus – COVID II and III guarantee programs – Czech Republic

  • Czech Republic
  • Coronavirus
  • Coronavirus - Country overview
  • Coronavirus - Trade and State Aid issues

09-04-2020

Has coronavirus affected your business? The Czech-Moravian Guarantee and Development Bank, a.s. ("CMZRB") has prepared a guarantee program facilitating access to operating finance for sole traders and small and medium-sized enterprises (SME).

What is CMZRB offering?

  • guarantees for commercial bank loans
  • financial contributions to pay interest on the guaranteed loan

What are the parameters of the program?

  • CMZRB guarantee up to 80% loan principal
  • guaranteed loan up to CZK 15 million
  • guarantee period up to 3 years financial contribution to cover interest graded according to the amount of the guaranteed loan

o for loans up to CZK 500,000 contribution of 30%, max. CZK 150,000

o for loans from CZK 500,000 to 1 million contribution of 20%, max.CZK 200,000

  o for loans from CZK 1 million to CZK 15 million contribution of 15%, max. CZK 1 million 

Who is the program intended for?

  • for sole traders, small and medium-sized enterprises whose economic activities are restricted due to the occurrence of COVID-19 and related preventive measures
  • operational needs funding relates to business activities outside Prague (the COVID Ill program is being prepared for businesses whose activities are in Prague, but no details about it are currently known)

What can be financed with a loan guaranteed by CMZRB?

  • operating expenses exclusively (e.g. wage and energy costs, rent payments, payment of supplier invoices, purchases of material, inventory and other small assets)
  • it cannot be used to finance investments, refinancing or repayment of another loan or leasing

In which banks can you arrange a loan guaranteed by CMZRB?

CMZRB envisages the involvement of all commercial banks that finance sole traders and SMEs: we recommend that you contact your bank advisor

How to apply

Receipt of applications for the first round was closed on 3 April 2020. All applications will now be evaluated in the next 10 business days. The second round of the COVID 11 program is expected to start on 20 April 2020.

Michal Hrabovský, Counsel
Michal Růžička, Senior Associate

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