Banking & Finance Flash/Focus
27. 3. 2020
Dear Clients and Business Friends,
Should you, your clients or business partners have any commercial interests in the Czech Republic, whether in the form of subsidiaries or individual investments, we would like to inform you of the imminent launch of a major subsidies program, that the state owned Czech-Moravian Guarantee and Development Bank (CMGDB) is to announce today to aid businesses affected by the COVID-19 crisis.
Nearly one billion EUR will be made available in a guarantee program to small and medium enterprises (businesses with less than 250 employees, 50 million EUR annual turnover and an annual balance sheet below 43 million EUR) to enable Czech banks to provide interest free loans to suffering companies.
Such businesses may apply for a guarantee:
- for a period of three years;
- for running capital financing between EUR 370 to EUR 550,000; and
- securing up to 80% of the loan facility.
CMGDB will also provide a contribution of EUR 35,000 for the payment of any interest on such loan.
There will undoubtedly be massive demand for these guarantees and we expect the program to be exhausted within a number of days from its launch!
Being by far the largest law firm in the Czech Republic with over 500 associates, including not only lawyers, but also tax and accounting professionals and expert economists, we have allocated a unique task force of over 100 professionals to assisting our clients in the application for the guarantee and obtaining the subsidized loan.
Due to our excellent relations with CMGDB and all the participating banks, we are in daily contact to ensure that we have the most up to date information and are able to provide significant added value to clients that seek our assistance in this matter.
As part our own COVID-19 supporting package, we offer these services to our clients for a rather symbolic flat fee of EUR 1,000. Should you or your clients have an interest in the subsidies program, please do not hesitate to contact us anytime at email@example.com.
Jaroslav Havel, Managing Partner
Filip Čabart, Partner