Call for applications for subsidies under the second "Covid-Rent" programme

The Ministry of Industry and Trade of the Czech Republic has launched a second rent-support programme for businesses whose operations were stopped or significantly limited due to the coronavirus-related measures effective from 22 October 2020. This programme follows the first rent-support programme from earlier this year, on which we reported here.

Tenants can apply for rent subsidies via a system accessible from the Ministry of Industry and Trade’s website https://aisportal.mpo.cz/AISPortal/default until 21 January 2021.

Under the programme, any tenant whose business has been affected by coronavirus-related measures is eligible to rent subsidies from the state if:

• the tenant paid at least 50% of the rent from 1 July to 30 September 2020 before applying for the subsidy;
• the lease agreement was concluded and effective before 1 July 2020.

The state will provide the tenant 50% of the rent from 1 July to 30 September 2020 up to up to CZK 10 million per tenant. However, the total subsidy for the entire country is capped at approximately CZK 3 billion. Similarly to the first Covid-Rent programme, the applications will be dealt on first-come-first-served basis. In contrast with the previous programme, no rent discount is required from the landlords.

The tenant’s application for the subsidy must include an affidavit that the tenant:

• has been restricted in its business in the leased premises and qualifies for the subsidy;
• is not in liquidation or bankruptcy;
• waives any further rights it might have against the state as a result of pandemic-related restrictions.

The tenant will also have to submit proof that it paid:

• full rent for at least two consecutive months between 1 July 2019 and 30 June 2020;
• at least 50% of the rent for July, August and September 2020.

The tenant will further need to show an affidavit from the landlord confirming:

• the existence of the lease agreement with the tenant; and
• that the tenant and the landlord are not affiliated.

There is no legal entitlement to receive the subsidy.

For more information on the Covid-Rent programme, contact your regular CMS advisor or local CMS experts.