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Lukáš Zahrádka | November 3, 2020

Covid-19 Manual: state subsidies for entrepreneurial rent

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Following the second wave of the Covid-19 pandemic, the COVID – Rent 2 Programme (hereinafter the “Programme”) has been launched, based on which affected persons may request a subsidy reaching a part of rent (hereinafter “Support”). Compared to the first version of the programme, certain changes have been made, due to which a wider range of persons is entitled to the Support.

Basic information

  • Support relates to the period from 1 July 2020 to 30 September 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 1 July 2020;
  • He has been banned from or significantly limited in providing retail or providing services on premises as a result of extraordinary measures in connection with the COVID-19 pandemic;
  • 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 30 June 2020;

Conditions for premises and the amount of Support:

  • Areas, to which affected premises must belong, have newly been specified. These are, for example, premises operating catering services, cinemas, clubs, discos, gyms and fitness centres;
  • The lessor need no longer provide a discount on reference rent to the applicant
    • *Reference rent = the total summary rent for the reference period (1 July 2020 ‑ 30 September 2020);
  • Prior to submitting the request, the applicant must have a minimum of 50 % of reference rent paid
    • 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, mutual offset is also considered to be payment;
  • The Support reaches 50 % 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 separately for each of the premises;
  • The Support may reach a maximum of CZK 10,000,000;
  • There is no legal entitlement to provision of the Support;
  • A deadline of 14 calendar days has been set for removal of faults;
  • It will be possible to perform inspection within a period of up to 10 years from the provision of support, we therefore recommend carefully saving all documentation;
  • Requests can be submitted from 21 October 2020 to 21 January 2021.

If you wish to receive assistance with preparing a request, please contact the lawyers below.

GT Legal, advokátní kancelář, s.r.o.