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| July 1, 2020

Advisory

COVID-19

State subsidies for entrepreneurial rent

Another programme mitigating the effects of the spreading of the Covid -19 disease, this time aiming at entrepreneurs, who operate retail or provide services. As part of the COVID – Rent programme (hereinafter the “Programme”), the state will pay part of rent for entrepreneurs (hereinafter “Support”), for whom activity was banned by extraordinary measures of the state. The Programme was launched as of 26 June 2020 under the auspices of the Ministry of Industry and Trade.

Basic information

Support relates to the period from 1 April 2020 to 30 June 2020.
Support will be provided in the form of subsidy for rent.

The conditions for an entrepreneur requesting Support

He is operating retail or provision of services to clients;
He is using business premises (which do not belong to him) based on a lease agreement entered into before 13 March 2020;
He was banned to provide retail or services in premises for at least a part of the period from 13 March 2020 to 30 June 2020 as a result of extraordinary measures in connection with the COVID-19 pandemic, even several days during the reference period will suffice;
He is not a party related to the lessor;
He is not in default of payment of any of his liabilities to selected institutions (e.g. the financial office, health insurance companies) due by 12 March 2020;
The conditions of the Programme are set up differently depending on if the premises are located
in a state-owned building or not.

Conditions for premises in buildings not owned by the state and the sum of Support:

The lessor must provide a discount of a minimum of 30 % of reference rent* to the applicant.
- Reference rent = the total summary rent for the reference period (1 April 2020 - 30 June 2020), before discount;
Prior to submitting the request, the applicant must have a minimum of 50 % of reference rent
- if rent payment has been deferred, the applicant must pay a minimum of 50 % of reference rent at least a day before submitting the request for provision of Support;
The Support reaches 50 % of reference rent.

Condition for premises in a state-owned building and the sum of Support:

Prior to submitting the request, the applicant must have a minimum of 80 % of reference rent
- if rent payment has been deferred, the applicant must pay a minimum of 80 % of reference rent at least a day before submitting the request for provision of Support;
The Support reaches 80 % of reference rent.

Selected other conditions

The applicant may only submit one request for the same premises;
If the entrepreneur wishes to request Support for several premises, a request must be filled in for each of the premises separately;
The Support may reach a maximum of CZK 10,000,000;
There is no legal entitlement to provision of the Support;
Removal of faults in the request is only possible twice in the same matter, a deadline of 14 calendar days has been set for removing faults;
Requests can be submitted from 26 June 2020 to 30 September 2020.