New COVID-related business support programmes

The government announced new programmes to support business activities: COVID – Uncovered Costs and COVID – 2021. Applications will again have to be submitted through the Ministry of Industry and Trade’s Agenda Information System (AIS MPO) portal as previously for other COVID programmes.

COVID – Uncovered Costs

This programme aims to compensate for fixed costs incurred by entrepreneurs who reported a significant decrease in sales compared with the period before the COVID-19 pandemic.  Under the first call, the relevant period is 1 January 2021 to 31 March 2021. The basic condition for awarding support is a decrease in sales in the relevant period by more than 50% compared with the same period in 2019 or 2020. Applicants will have to prove their results of operations based on an adjusted income statement for the relevant period confirmed by an accounting or tax advisor. Where losses net of subsidies exceed CZK 2 million, applicants will have to submit their income statement verified by their statutory auditor.

Support shall amount to 60% of uncovered fixed costs, up to CZK 40 million per one call. This support can neither be combined with the COVID 2021 programme nor with the compensation bonus.

Under the COVID – Uncovered Costs programme, uncovered fixed costs shall mean losses net of subsidies as specified by Section 3.1 of the European Commission’s Temporary Framework, i.e.  Antivirus A, B, A Plus and other subsidies for eligible expenses.
Applications will be accepted from 19 April 2021 to 19 July 2021.

COVID – 2021

This type of support will be provided for maintaining business activities and operations, e.g. expenses for materials, loan repayments or personnel expenses incurred between 1 February 2020 and 31 March 2021. This type of support falls within the EC’s Temporary Framework, based on which it is currently possible to provide aid of up to EUR 1 800 thousand until the end of 2021.

If applicants wish to apply for this support, they must prove and document that their sales for the relevant period decreased by at least 50%, whereas the relevant period under the first call is the period between 1 January 2021 and 31 March 2021, and the decrease in sales will be compared with the period from 1 January 2019 to 31 March 2019 or from 1 January 2020 to 31 March 2020.

Support will amount to CZK 500 per employee under employment (expressed as a full-time equivalent – FTE) for every day of the relevant period, i.e. under the first call, 80 days between 11 January 2021 and 31 March 2021. When calculating the coefficient, only employees registered for the payment of premiums with the Czech Social Security Administration on 11 January 2021 shall be taken into account. For applicants with less than three employees, support shall always amount to CZK 1 500 per day (as long as there is at least one FTE employee).

Support granted under COVID – 2021 cannot be combined with any other types of support to mitigate the effects of the COVID – 19 pandemic, excepting the Antivirus programme (and COVID – Accommodation II after adjustments to the decisive period).
Applications will be accepted from 12 April 2021 to 31 May 2021.

Conclusion

The two above support programmes are intended for both natural and legal persons.

Considering our experience with previous calls, we recommend filing applications sufficiently in advance before the end of the filing deadline. Applicants may thus avoid potential technical problems caused by a possible system overload in the last days before the end of the deadline.

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