Economic support of employees, self-employed persons and companies

To help overcome the difficult financial situation, the government has suggested and will gradually implement the following measures to support companies, self-employed persons and employees.

• Project Antivirus - a subsidy to employers of up to 60% and 80% of paid remuneration, including contributions, depending on the nature of the obstacle

1. Employers will receive a subsidy amounting to full or partial compensation of the remuneration that will belong to employees who are unable to work because of an obstacle on the employee's side (quarantine order) or on the employer's side (the closure of the premises by Government directive), if it can be proved that the barrier to employment arose as a result of the COVID-19 infection.
2. Obstacle: forced closure of premises and quarantine - a subsidy to employers in the amount of 80% of remuneration paid (including contributions) - up to CZK 39,000.
3. Obstacle: associated economic difficulties - subsidy to employers in the amount of 60% of remuneration paid (including contributions) - up to CZK 29,000.

• COVID Loan I (suspended from 20 March 2020) - currently, submitted applications are being reviewed

1. The Czech-Moravian Guarantee and Development Bank ("Českomoravská záruční a rozvojová banka" - the CMGDB) has offered advantageous loans in the amount of between CZK 500,000 and 15,000,000, with zero interest rate, to small and middle-sized entrepreneurs

• COVID Loan II (currently receiving applications, as of 2 April 2020)

1. The CMGDB is providing guarantees for loans granted by commercial banks and is contributing to interest payments. Within this scheme, the CMGDB will provide guarantees on loans of up to CZK 15,000,000. Such a guarantee will cover up to 80% of the commercial loan, and the applicant can draw a financial contribution amounting to up to CZK 1,000,000 for covering interest payments (depending on the size of the loan in question).

• Bank guarantees within the Export Guarantee and Insurance Corporation (the EGAP)

1. The Government also intends to support big companies in the form of guarantees for loans provided by the EGAP. The total amount of loans could be as much as CZK 800 billion. Currently, this guarantee mechanism is under preparation.

• Postponement of rent payments for entrepreneurs

1. The Government has approved a proposal whereby companies that have had to shut their operations because of the Covid-19 measures may postpone rent payments for the period from 12 March 2020 until 30 June 2020
2. The Government bill must be approved by Parliament.

• A moratorium on loan and mortgage payments - repayments of loans and mortgages concluded before 26 March 2020 will be suspended for up to six months

1. Repayments will be suspended after debtors report their intention to their creditors, citing as a reason the negative economic effect of the coronavirus pandemic. Such reasons do not have to be proved.
2. The Government bill must be approved by Parliament.

• Carers' allowance for employees

1. Under the relevant legislation (already signed by the President), employees will receive a carers' allowance for the entire period during which schools are closed (not only for nine days); this measure applies to parents with children under 13 years. Parents may take turns in caring for their children during the entire period.

• Carers' allowance for self-employed persons from 1 April 2020

1. The carers' allowance amounts to CZK 424 per day; entitled persons are parents of children under 13 years of age (a lower age limit is not given) for the whole period during which schools and pre-school institutions are closed

• Direct support to self-employed persons in the form of a compensation bonus of up to CZK 25,000. The relevant bill will be debated by the Government on 7 April 2020.

1. Self-employed persons entitled to such support will be those that cannot perform their business activities because of Government directives, provided that (i) their gross income was reduced at least by 10% in the period January-March 2020 compared to the period January-March 2019 and (ii) self-employed persons who reached the limit of gross income in 2019 of CZK 180,000 (or CZK 15,000 per month if the activity in question was performed only for a part of the year).