Extraordinary Measures - COVID III Guarantee Programme for Businesses with a Maximum of 500 Employees (No. 914)
The COVID III programme was approved by the government on 18 May and is intended for self-employed and entrepreneurial legal entities employing up to 500 employees. Loans will be provided by cooperating commercial banks, the Czech-Moravian Guarantee and Development Bank (ČMZRB) will issue guarantees.
The guarantee is provided up to 90% of the principal of the guaranteed loan for companies with up to 250 employees and up to 80% of the principal of the guaranteed loan for companies with 250 to 500 employees. The maximum amount of the guaranteed loan may not exceed CZK 50 million and the guarantee period has a maximum of 3 years. As in previous COVID programmes, loans must be used to cover operating expenses, such as wages, rent, energy payments, payment of supplier-customer invoices, acquisition of inventory, materials, etc.
According to a statement from ČMZRB, entrepreneurs can start negotiating a loan with their bank now.