In the context of the new government measures aiming at preventing the spread of Covid-19 disease, the government apart from the current programs in force (mainly Antivirus, Covid-Rent II and others) approved new financial aid programs, namely Covid-Gastro-Closed enterprises and Covid-Accommodation II.
The Czech Ministry of Local Development has the latter under patronage and for the time being more detailed terms have not yet been published and will be further supplemented.
Details concerning the first mentioned program were published on the website of the Czech Ministry of Industry and Trade.
Authorized entities must fulfil all the following conditions:
- CZ tax residents (non-residents must fulfill other conditions),
- performance of business activities based on the Business Act, if any of these activities fall under selected sectors within the scope stated by the Ministry of Industry and Trade (for further details please visit: https://covid.gov.cz/situace/kompenzace/covid-gastro-uzavrene-provozovny) contrary to the other proposal, the program is not limited to entities providing catering services;
- performance of business activities was restricted or prohibited due to adopted crisis measures at least in part of the period dating from 14 October 2020 to 10 January 2021;
- decrease in sales and liquidity (without stating any further criteria or values);
- furthermore, the applicant shall not:
- be a company facing difficulties (within the meaning of European legislation)
- have arrears in relation to the state budget,
- be an unreliable payer or person,
- terminate activity within a period of at least three months since receiving the aid.
In order to fulfil the conditions, the applicant shall sign an affidavit. The declaration shall include the waiver of claim for compensation from the state arising from the crisis measures.
Amount of financial aid:
- 400 CZK/day/employee (possibly a cooperating freelancer);
- the amount will therefore be calculated as the sum of 400 CZK multiplied by the number of employees (shorter working time is recalculated) and/or cooperating freelancer, multiplied by the number of recognised days, for which the operation of business activity was restricted in the scope as stated by the Ministry of Industry and Trade; but not exceeding the limit of the Temporary frame as stated by the Ministry of Industry and Trade;
- the calculation does not include employees in the sectors that were supported in financial aid programs COVID – Culture, COVID – Accommodation and COVID – Sport.
Application: application will have to be presented in a manner and within the deadline stated in the Provider´s call (the call has not yet been announced).
Purpose: the subsidy is granted for operating costs and maintaining business activity such as personnel costs, costs of materials, services (including leasing), amortization, taxes and charges, loan instalments, overhead costs etc.
Provider: Ministry of Industry and Trade.
Temporary frame: the financial aid falls under the so-called Temporary frame and is therefore subject to application of the maximum of 800 thousand EUR (in which is also included the financial aid received from other programs, i.e. Antivirus A+, Covid-Rent I and II etc.).
There is no legal right to the granting of a subsidy.
If you have any questions, please do not hesitate to contact us. We will be happy to assist you!