Financing – Latest information about the support for businesses

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Information for entrepreneurs

Options to help mitigate the economic impact on your business.

Current information FOR ENTREPRENEURS AND BUSINESSES

NEW GUARANTEE SCHEME RESULTING FROM COOPERATION OF KB AND NRB​ (Národní rozvojová banka, formerly Českomoravská záruční a rozvojová banka)​

I WANT A LOAN

FINANCING WITH COVID III

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KB currently accepts applications under a guarantee programme of NRB intended for the support of entrepreneurs and businesses affected by the COVID-19 pandemic – the so-called COVID III programme. It is a guarantee programme available throughout the Czech Republic (incl. Prague), under which NRB provides support in the form of guarantees for operating loans. The total allocation of funds under the COVID III programme amounts to CZK 150 bn., with CZK 50 bn. for tranche 1.

Applications are accepted solely via the “I WANT A LOAN” online form available at KB’s website – see the above link.

The NRB guarantee itself is to be arranged by Komerční banka as part of the loan application process – i.e. it is not necessary to apply for the guarantee separately, as was the case in connection with previous guarantee schemes.

 

Envisaged basic parameters of a KB loan and NRB guarantee under the COVID III programme:

Eligible borrowers

 
  • Legal entities and entrepreneurs (individuals) in the Czech Republic with no more than 500 employees

  • Engaged in the following sectors: agriculture, forestry, production, trade, transportation, services, etc. (CZ-NACE A, B08, C, E, F, G, H, I, J, M, N, P, Q, R a S)

Loan purpose

Financing of operations (with a revolving option available)

Maximum loan amount

CZK 50 million

Loan currency

CZK

Loan to be arranged by

No later than 31 December 2020

Form of NRB support

Loan guarantee

Maximum guarantee amount

portfoliová

Maximální výše záruky

90% of the guaranteed loan for applicants with up to 250 employees

 

80% of the guaranteed loan for applicants with 250 to 500 employees

Maximum term of guarantee

3 years

Other specific conditions

Guarantee validity is subject to disclosure of the borrower, including its beneficial owner

 

 

 

 LIST OF BENEFICIARIES OF COVID III

As of 1 February 2021, NRB accepts applications for COVID SPORT bank guarantee.

This guarantee is intended for small and medium-sized enterprises active in the area of sports (for selected NACE codes) anywhere in the Czech Republic with the exception of the City of Prague.

In order to qualify for the guarantee, a loan must be provided; a copy of the relevant loan agreement must be enclosed to your bank guarantee application.

 

Parameters of the guaranteed loan:

Maximum loan amount

 

CZK ​15 million
Eligible NACE

 

49392 – Passenger transport by cable cars or ski lifts

8551 – Sports and recreation education

9311 – Operation of sports facilities

9312 – Activities of sports clubs (only if closed due to the COVID pandemic)

9313 – Fitness facilities (only if closed due to the COVID pandemic)

9319 – Other sports activities (only if closed due to the COVID pandemic)

9329 – Other entertainment and recreation activities (only for operation of ski slopes and rental of equipment for leisure and entertainment as an integral part of services provided by recreation facilities)

Loan purpose

Funding of operating costs (e.g. wage costs, cost of energy, rent, settlement of supplier invoices, funding of receivables, purchase of materials, inventories, and other low-value assets). It must always concern new financing – the guarantee cannot be provided for an existing loan. No other support can be used in connection with the costs covered by the loan.

Loan type

Gradually repaid loans for the funding of operating costs

Revolving loans

The guarantee may also be used to secure partial loans under a framework agreement.

Final maturity of the loan
(other than revolving loans)

No less than 24 months

Loan drawdowns

Drawdowns must start within 3 months from the day the loan is granted.

Maximum guarantee amount

80%

Maximum term of guarantee

3 years

Guarantee with a financial contribution for interest paid on the loan in the following amount:

30% of the guaranteed loan – up to CZK 150,000 for loans of up to CZK 500,000

20% of the guaranteed loan – up to CZK 200,000 for loans ranging from CZK 500,000 to CZK 1,000,000

15% of the guaranteed loan – up to CZK 1,000,000 for loans of more than CZK 1,000,000

The maximum amount of the financial contribution and payment dates shall be specified in the bank guarantee agreement.

 

NEW GUARANTEE PROGRAMME RESULTING FROM COOPERATION OF KB AND EGAP

Exportní garanční a pojišťovací společnost, a.s. (EGAP) has prepared a new programme to support large companies affected by the coronavirus crisis. This support – designed as a guarantee for operating or investment loans - is targeted at export-oriented businesses or subcontractors thereof, provided the share of export of goods and services amounted to at least 20% of total sales of such businesses in 2019 and provided they have at least 250 employees (as a group of related companies). The total allocation will amount to CZK 142 bn. In terms of individual sectors, the programme targets wide range of sectors; however, some are excluded.

Submission of applications for the COVID Plus support is ensured by Komerční banka as part of the loan negotiation process. Please note that this product cannot be combined with other public support instruments available in connection with the COVID-19 pandemic.

Basic parameters of KB loan and EGAP guarantee

Intended recipients

 

For businesses – exporters or their subcontractors with the share of exported goods and services amounting to at least 20% of their total sales (in 2019) and at least 250 employees (on a group basis)

Excluded sectors

Accommodation and gambling

Loan objective

Financing of operational needs or investments

Minimum loan amount

CZK 5 million

Maximum loan amount

CZK 2,000 million

Financing limit

25% of total sales for 2019

Loan currency

Kč, EUR, USD

Loan to be arranged by

No later than 31 December 2020

Early loan repayment     

Possible at any time without any fees

EGAP support type

Guarantee for a provided loan

Guarantee type

Individual guarantee

Maximum guarantee amount

80% of the loan for applicants with EGAP rating B or better

 

70% of the loan for applicants with EGAP rating B-

Maximum term of guarantee 

3 years for financing of operational needs

5 years for financing of investments

Condition for assessment

Financial statements as at 31 December 2019 to determine the rating

(provisional statements are possible)

 

NRB
​KB – in cooperation with the Národní rozvojová banka (NRB, formerly Českomoravská záruční a rozvojová banka) – continues to provide loans on preferential terms with M-Guarantee (programme Guarantee 2015 – 2023). For more information, visit our website.

PGRLF
In cooperation with the Farming and Forestry Relief and Guarantee Fund (Podpůrný a garanční rolnický a lesnický fond, a.s.; “PGRLF”), we are prepared to provide support to farmers in the form of loans with interest rate subsidies. For current information about individual programmes, visit the PGRLF website.

MINISTRY OF FINANCE
Guide for taxpayers in connection with the coronavirus pandemic

AMSP ČR
Current information for businesses in connection with the coronavirus pandemic

NRB
Current information for businesses in connection with the coronavirus pandemic