The government will provide a rent contribution of 50 percent for entrepreneurs affected by the coronavirus crisis under the conditions that the landlord reduces the rent by 30 percent and the tenant pays a fifth. Tenants who pay rent to a public entity will receive equal support of 80 percent. The COVID rental program was approved by the government and The Ministry of Industry and Trade will assign 100 employees for its preparation.
Support up to a maximum of CZK 10 million will cover April, May and June. The program is designed to help entrepreneurs who have had to close down due to government measures against the spread of coronavirus. Entrepreneurs who operated in limited traffic, sold through street windows, delivery or e-shop, will also be able to draw the support. At the same time, the subjects cannot draw other support for rental expenses or rent the space from a related party.
Lease agreements for the premises signed before March 12, when a state of emergency was declared.
The entrepreneurs will have to submit:
- Proof of paid rent for January and February, or previous months;
- Proof of payment of half of the rent;
- Proof of payment of VAT from 70 percent of the rent for the period from 1 April up to the date of application.
Up to CZK 5 billion will be spent on this relief from the state budget and up to 150,000 to 200,000 entrepreneurs could be interested in the financial support.
“Our effort is the long-term development of the entire retail sector, which is why we have decided to support retailers and we intend to continue to do so.”Jan Kubíček, Chairman of the Czech Committee of the Association of Shopping Centers.