After initiating the COVID I loan program in mid-March, the Czech-Moravian Guarantee and Development Bank (ČMZRB) has prepared the so-called COVID II program; a follow-up program aimed at increasing the scope to even the smallest business owners.
As stated by the director of ČMZRB Jiří Jirásek, these loans will allow businesses to also cover their basic operational expenses. By involving commercial banks that have experience with small business owners, the loan is expected to become available to business owners faster than the original COVID I loan.
Furthermore, aside from providing guarantees, ČZMRB will also assist with paying part of the interest fee. ČMZRB will guarantee for up to 80% of the loans with a maximum warranty period set for 3 years. According to Jirásek: “the program is set up in a way to assist business owners with both fast and cheap operational financing. A large part of these loans will thus be interest-free”.
Due to the fact that ČMZRB will be allocating funds from the European Union Operational Enterprise and Innovation for Competitiveness Program, only projects undertaken outside of Prague will be eligible. However, as stated by Jirásek, a similar program is being prepared for the capital as well.
Applications to COVID II will be submitted in rounds. The first round will start on 2 April 2020 in which CZK 1.5 billion will be allocated. For further information on the application process, you can call the following help line +420 246 017 397 or visit the ČMZRB website (in Czech only).