Loan guarantees for large enterprises – COVID plus guarantee programme
In cooperation with the Ministry of Industry and Trade and the Export Guarantee and Insurance Corporation (EGAP), the Ministry of Finance is preparing a programme to mitigate the impact of the coronavirus crisis on large export firms and manufacturers. The aim of the programme is to strengthen the liquidity of export-oriented enterprises.
Aid should be provided like in the COVID II programme in the form of loan guarantees, but this time for large enterprises over 250 employees. Guarantees should be provided for the operating and investment loans of exporters and producers. To obtain a guarantee from EGAP, the following condition must be met:
In 2019, the exporter’s revenue from the exports of goods and services must have amounted to at least 20% of their total revenue from products, services, and sales.
For working capital loans, a guarantee will be granted for a maximum period of three years; while investment loans should be guaranteed for a maximum period of five years. The minimum guaranteed loan amount will be CZK 5 million, with 25% of the exporter’s total annual revenue from products and services for 2019 set as the maximum amount of the guaranteed loan. The EGAP guarantee should be up to 80% of the loan principal. More detailed information should be published in the following days.