State Aid COVID Rent - Call 2
JUDr. Jakub Vozáb, PhD.
26.10.2020
Our law firm administers applications for state support within the COVID – Rent program for our clients.
If necessary, you can contact us at jakub@vozab.com.
COVID Support Program – Rent prepared by the Ministry of Industry and Trade in response to the worldwide coronavirus pandemic. It is intended for entrepreneurs who, due to emergency measures, had to temporarily close outlets for retail activities and the provision of services to customers in these establishments.
Basic data:
- Call 2 was published on 16 October 2020
- Applications can be submitted from 21 October 2020, 9:00 am to 21 January 2021, 11:59 pm online, via the information system accessible from the AIS MIT Portal.
- The relevant periods for which support is provided are July, August and September 2020.
- The amount of aid is 50% of the relevant rent for the relevant period.
- The landlord's participation in the form of any rental discount is not required.
- The maximum amount of support is CZK 10 million for all establishments of one applicant. The maximum amount of support in the amount of CZK 10 million from Call 1 and Call 2 in the COVID – Rent program does not add up. The applicant must continue to check that the EC Temporary Framework of € 800,000 is not exceeded.
- The initial allocation of funds for Call 2 was CZK 1.2 billion. Based on a government resolution, it was increased to a total of CZK 3 billion on 21 October 2020.
- From the deadline of 21 October 2020, 9:00 am, it is possible to submit applications, edit them and evaluate them. However, the release of the funds of approved applications will be possible only after the notification of Call 2 by the European Commission.
- If the applicant has already registered in the system in the first call, a new registration will not be necessary.
- The identity of the applicant will be verified by means of an electronic identification means. The manual for electronic identification is available for download in the appendix. Details on individual means of electronic identification can be found on the information website eIdentita.cz. All necessary confirmations and forms are prepared for the applicant in the information system.
- Who can apply for support?
Call 2 covers a defined range of operations, crisis sectors affected by the crisis measures, and thus eligible applicants defined. The circle of eligible applicants was set out in the Plan and approved by Government Resolution No. 1037 of 14 October 2020.
Subsequently, in connection with Government Resolution No. 1079 of 21 October 2020, the circle of eligible applicants was extended to include all operations that were closed or restricted. The scope of Call 2 is thus again almost flat, as was the case with the first call. Only establishments that form exceptions contained in a government resolution are excluded from the circle of eligible applicants.
On this basis, Appendix No. 1 to Call 2 (in the annexes below) is therefore published. Appendix No. 1 expands the circle of eligible applicants. No other requirements of Call 2 are not affected by Appendix No. 1.
For the purposes of drawing support under this program, the Lessee and Lessor may not:
- close persons according to the provisions of § 22 of Act No. 89/2012 Coll., Civil Code, (while the provision on close persons according to § 22 NOZ is not applied to the bodies of business corporations, eg PO father can rent the FO son or PO son )
- in the relationship of the person controlling and controlled according to the provisions of § 74 et seq. Act No. 90/2012 Coll., on business corporations,
- persons acting in concert pursuant to the provisions of Section 78 of Act No. 90/2012 Coll., on Business Corporations,
- in a relationship where one of them exercises a significant influence over the other pursuant to the provisions of Section 22, Paragraph 5 of Act No. 563/1991 Coll., on Accounting. as amended,
- persons who are part of one consolidation unit pursuant to the provisions of Section 22, Paragraph 6 of Act No. 563/1991 Coll., on Accounting, as amended.
What conditions must be met for aid to be granted
- Payment of at least 50% of the decisive rent by the aid applicant before submitting the application. If the rent payments were postponed by the applicant for support on the basis of Act no. No. 210/2020 Coll., or by an agreement between the aid applicant and the lessor, the condition is considered to be fulfilled if at least 50% of the decisive rent is paid by the aid applicant before submitting the aid application.
- The amount of aid is 50% of the relevant rent for the relevant period.
What needs to be documented?
All necessary documents and affidavits will be prepared for the applicant in the information system. They are, for example:
- Affidavit of the beneficiary that he is an eligible applicant and meets all the conditions of Call 2.
- Affidavit of the landlord, about the existing tenancy.
- Proof of payment of the usual amount of rent for two consecutive months from 1 July 2019 to 30 June 2020. If the lease was concluded after 30 April 2020, a document proving payment of rent from the conclusion of the lease until 30. June 2020. The recommended form of proof of payment is an account statement, confirmation of payment or receipt.
- A document confirming the payment of part of the decisive rent for the given establishment at least in the amount of the required support.
- Affidavits will be provided with electronic or verified signatures.
- All attachments will be inserted into the System by the applicant.
Source: MIT Published: 16.10.2020 Author: Department of Export Strategy and Services Management 51400