THE CAPITAL CITY OF PRAGUE PREPARED A RESCUE PROGRAM FOR SMALL AND MEDIUM-SIZED ENTREPRENEURS CALLED “COVID PRAHA“
The Council of the Capital City of Prague in response to the fact that the government support program COVID II does not apply to entrepreneurs operating in the City of Prague, the Council approved its own proposal to help the Prague-based small and medium-sized entrepreneurs, whose economic activity was limited due to the occurrence of the coronavirus spread and related preventive measures. Assistance to such affected entities is to be provided through relocation of funds from the “Operational Program Prague – Growth Pole” to the emerging rescue program “COVID PRAHA”, with more than 500 million crowns to be transferred.
The rescue program, which should operate on the same principle as the COVID II government program, will be conducted by the City of Prague in cooperation with the Czech-Moravian Guarantee and Development Bank. The aim is to create a guarantee scheme, which should substantially contribute to the stabilization of the current economic situation and thus mitigate the impact on small and medium-sized entrepreneurs who employ a maximum of 250 people in Prague. However, more support for the Prague entrepreneurs should be provided by the future government program COVID III, in which the territory of Prague should already be included, and which should enable entrepreneurs to obtain much more significant financial assistance.
With regard to the fact that the rescue program changes the purpose of using the funds provided by the European Union, according to Prague Mayor Hřib, the program will be pushed through even though it is not formally approved in this form by the Ministry for Regional Development or by the European Commission. If the allocation of funds will not be approved by the European Commission, the funds will be provided directly by the government, which has committed to guarantee the program. According to Hřib, Prague has also been promised to receive another 400 million from the Ministry of Industry and Trade, which will be provided also from the state resources.
Details on the specific conditions for drawing the financial support, or at least when and how it will be possible to apply for financial assistance through the “COVID PRAHA” program, have not yet been published.
For more information on this subject, please feel free to contact:
JUDr. Monika Rutland, partner
rutland & partners, law firm
tel: +420 226 226 026
email: monika.rutland@rutlands.cz
