COVID – Rent
On May 18, 2020, a new program entitled “COVID – Rent” was adopted to support entrepreneurs affected by the spread of COVID-19.
The aim of the COVID – Rent program is to provide support to entrepreneurs who were restricted by the extraordinary measures from selling goods or services in leased or subleased premises, at least within the part of the period from 13 March 2020 to 30 June 2020. The support will be provided in a form of state subsidies for the paid rent.
Who can apply for support:
- Natural person – entrepreneur or legal person, whether doing business under a Trade License Act or other law;
- The lease or sublease agreement for the respective business premises was concluded before March 12, 2020;
- The entrepreneur is not a person related to the landlord;
- The entrepreneur is not in delay with the payment of any of obligations to selected institutions (Tax Office, Czech Social Security Administration, health insurance companies, Customs Administration, etc.).
In order to receive the rent subsidy, the following conditions must be met:
- The Landlord provided the tenant with a 30% discount on the monthly rent for the period of April, May and June 2020 (this condition does not apply to entrepreneurs with leased business premises owned by the Czech Republic);
- The entrepreneur paid 50% of the monthly rent (from April to June 2020) in the usual term and in the usual way according to the lease agreement; if the due date of the rent has been deferred, this condition is met by paying 50% until the application for the subsidy is submitted.
If the business premises are owned by the Czech Republic, 80% of the monthly rent for such period must be paid.
In the case of a positive response to the application (which, however, is not claimable), support will be provided in the amount of 50% of the monthly rent for the period of April to June 2020, respectively 80% if the business premises are the property of the Czech Republic.
The amount of support from the COVID – Rent program may not exceed CZK 10,000,000 per entrepreneur (i.e. CZK 10,000,000 for all its business premises together) and at the same time may not exceed the amount of EUR 800,000 in combination with other drawn support programs.
For more information on this subject, please feel free to contact:
JUDr. Monika Rutland, partner
rutland & partners, law firm
tel: +420 226 226 026