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The Ministry of Industry and Commerce on December 9 issued two new programs that aim to support businesses affected by the coronavirus pandemic in the period between November 1, 2021, until December 31, 2021.
The Avízo Výzvy 2 call aims to provide financial support to ensure the liquidity of entrepreneurs, with employees, whose sales have drastically decreased due to the Covid-19 pandemic, to prevent further closures of commercial activities. Instead, the Avízo Výzvy 3 aims to help companies whose turnover due to the coronavirus pandemic has decreased by at least 30% in the reference period compared to the same period of 2019 (or 2018), by implementing aid for the part of the costs of income that were not covered in the period in question.
Government funds: Avízo Výzvy 2
The candidates eligible to receive this type of funds are:
- Entrepreneurs, physical or legal persons, who carry out commercial activities on the basis of Law no. 455/1991 Coll.;
- Activities that reduced sales by at least 30% per unit compared to the comparable period, from 1 November 2019 to 31 December 2019. Sales in this calculation mean the revenues from your services and goods. In the event that the applicant has established the activity after 1 November 2019, he can choose as a comparison period any two consecutive months in the period from November 2019 to October 2021;
- Activities that had at least one employee as of November 1, 2021;
- Activities which have not yet exhausted the ceiling of Community aid, up to the maximum possible amount according to point 3.1 of the EU Temporary Framework, for a single beneficiary;
- Activities that have not violated the emergency measures taken in relation to the spread of COVID-19;
The eligible costs – which will then be covered by the financial support – are:
- costs and expenses for the operation and maintenance of business activities or establishments, such as personnel costs, material costs, provision of services (including leasing), depreciation, taxes and commissions, loan repayments, overheads, and authorized from 1 February 2020 to 31 December 2021.
The maximum amount provided to the beneficiary:
(a) in the event of a decrease in sales of at least 30% but less than 50%, the amount shall be calculated as a product of CZK 300 multiplied by the number of employees expressed in equivalents considered full-time multiplied by the number of days of the Reference Period.
(b) in the event of a decrease in sales of at least 50%, the amount shall be calculated as a product of 500 CZK multiplied by the number of employees expressed in equivalents considered to be full-time (FTE) multiplied by the number of days of the Reference Period.
The other conditions of the funds are:
- The applicant may submit only one application;
- The applicant will not cease his activity within at least three months from the granting of the contribution;
- Support cannot be combined with other support of the COVID program – Uncovered Costs for the same period;
- No further public support will be available for eligible expenditure incurred by the bank during the reference period;
- Support will be provided up to a maximum aid ceiling determined according to point 3.1 of the European Commission’s Temporary Framework per individual beneficiary;
- Further conditions will be specified in the Call.
Government funds: Avízo Výzvy 3
The candidates eligible to receive contributions under the new call are:
- Entrepreneurs, natural or legal persons, who carry out commercial activities on the basis of Law no. 455/1991 Coll.;
- Activities that reduced sales by at least 30% in the reporting period from 1 November 2021 to 31 December 2021, compared to the same period in 2019. In the event that the turnover of the micro-enterprise (defined according to EU legislation) has decreased by 80% from 1 July to 31 December 2021 compared to the same period of 2019 (or 2018), that company may choose from 1 July to 31 December 2021 as the Relevant Period. The Comparison Period with which the applicant compares the decrease in turnover is considered from November 1 to December 31, 2019, or from November 1 to December 31, 2018. The applicant who has been established and/or started his business activity (or has become self-employed) only after 1 November 2019, or an applicant whose business activity has been suspended both in the period from 1 November to 31 December 2019, may choose as the Comparison Period two consecutive months from 1 November 2019 to 31 October 2021. If the applicant has chosen the reference period from 1 July to 31 December 2021, the Comparison Period runs from 1 July to 31 December 2019 (or 2018);
- Corporate entities that are at a loss for the Relevant Period;
- Activities that have not been violated and emergency measures taken in relation to the spread of COVID-19;
Definition of the basic deadlines for the request of the call:
- The applicant’s financial results will be highlighted by an adjusted income statement based on the interim financial statements for the Reporting Period. The rules for compiling the adjusted income statement will be specified in detail in fund 3;
Form and determination of the amount of support:
- In the event of a decrease in turnover of at least 30%, but less than 50%, for the Reference Period compared to the Comparison Period, the amount of support shall be 40% of the uncovered costs for the Reference Period.
- In the event of a decrease in turnover of at least 50% for the Reference Period compared to the Comparison Period, the amount of support shall be equal to 70% of the uncovered costs for the Reference Period.
- In the event of a decrease in the turnover of a micro-enterprise, as defined by the European Commission, by at least 80% for the Reference Period compared to the Comparison Period, the amount of support shall be equal to 90% of the uncovered costs for the Reference Period.
- Support is provided under this Call n.3 up to a maximum of CZK 30 million per applicant.
The other conditions of the funds are:
- The decision to grant and release the aid will be possible after a positive decision of the European Commission;
- Support must be provided no later than June 30, 2022;
- The Beneficiary is obliged to allow the authorities to carry out the control over the documentation;
- Further conditions will be specified in the Call.
Further provisions:
- There is no legal right to the subsidy;
- The announcement of call 3 is expected after the end of the decisive period;
- The specific conditions of Fund 3 may be subject to change from Fund 3;
- The instructions for completing the adjusted income statement and the other conditions will be set out in fund 3.
Sources: Camic.cz & Ministry of Industry and Trade.
