Background information

The COVID III guarantee programme follows the COVID I, COVID II and COVID Prague programmes. The COVID III guarantee programme helps to self-employed and companies with up to 500 employees and affected by the coronavirus. Unlike in COVID I and COVID II, entrepreneurs would no longer apply for a guarantee with Czech-Moravian Guarantee and Development Bank (Českomoravská záruční a rozvojová banka, ČMZRB but negotiate directly with a commercial banks involved in the program (see Sources). This should eliminate a number of administrative and legal difficulties which were criticised in COVID I and COVID II. However, ČMRZB is still a managing authority.

Unlike COVID I and COVID II, COVID III covers also larger companies (up to 500 employees) and is applicable nation-wide, Prague included.

Content of measure

The guarantee will apply for operating loans of up to CZK 50,000,000 (€1,869,858 approx.) that will be provided until 31 December 2020. The guaranteed loan can be used to cover operating expenses, such as wages, rents, energy payments, payment of supplier-customer invoices, acquisition of inventory, materials, etc.

The guarantee is the following:

• self-employed persons and companies with up to 250 employees will be entitled to a guarantee of up to 90% of the principle of the operating loan, but at most CZK 45,000,000 (€1,682,872 approx.).
• Companies with 251-500 employees will receive a guarantee of up to 80% of the operating loan, but at most CZK 40,000,000 (€1,495,886 approx.).

The length of the guarantee will be at most three years.

The transaction also have to the following criteria:

• will be implemented on the territory of the Czech Republic
• does not intend to apply for other public support
• was not supported in the COVID Plus programme.

Use of measure

As of 15 March 2021, commercial banks involved in the programme have approved 4,204 applications (out of the total number of applications 5,891) with the total sum of CZK 28,438,000,000 (€1,090,205,099 approx.).

As of 30 May 2021, commercial banks involved in the programme have approved 5,121 applications (out of the total number of applications 5,891) with the total sum of CZK 33,768,000,000 (€1,313,929,961 approx.).

As of 30 November 2021, commercial banks involved in the programme have approved 7,004 applications (out of the total number of applications 11,185) with the total sum of CZK 44,196,000,000 (€1,767,840,000 approx.).

As of 15 February 2022, commercial banks involved in the programme have approved 7,583 applications (out of the total number of applications 11,671) with the total sum of CZK 47,753,000,000 (€1,936,848,509 approx.).

In February 2022, Ministry of Regional Development of the Czech Republic published an evaluation Analysis of the ESIF measures responding to the COVID-19 pandemic and evaluation of the ESFI. This analysis evaluates some of the COVID-19 antiepidemic measures, namely COVID I interest-free state loan, COVID II state guarantee programme, COVID III state guarantee programme, COVID Prague and Technology-COVID call within OPPIK.

This evaluation shows that the positive impact of the above mentioned antiepidemic measures cannot be yet statistically confirmed. The moratorium on debts and mortgages declared in the first phase of the COVID-19 pandemic played a major role regarding the survival rate. However, in combination with the above mentioned measures, it has likely only delayed the insolvency of a number of beneficiaries. In general, no statistically significant difference in the trends of employment rates was observed when comparing supported and unsupported enterprises.

Evaluation study also have proven that the support was not strongly focused on the economic sectors that were most affected by the pandemic (tourism, HORECA, accommodation services). In general, above mentioned measures applied were appropriate, however, should have been more targeted on most affected sectors and regions.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Solo-self-employed SMEs One person or microenterprises Larger corporations	Does not apply to citizens

Actors and funding

Actors	Funding
National government Company / Companies	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Informed	Informed
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Peak or cross-sectoral level

Involvement

Social partners, which are members of the tripartite body (Council of economic and social agreement, Rada hospodářské a sociální dohody, RHSD) were informed and consulted in both formal (requested by institutional settings) and informal ways. They are not involved into the management of policy measures.

Views and reactions

Supportive.

Sources

• 18 May 2020: CMRZB: COVID III National programme/ČMRZB: Národní program COVID III (www.cmzrb.cz)
• 18 May 2020: CMRZB: List of banks involved in the programme/ČMRZB: Seznam spolupracujících bank (www.cmzrb.cz)
• 28 September 2020: ČMRZB Press release: Current state of COVID programmes applications processes/ČMRZB: Průběžný stav vyřizování žádostí COVID (www.cmzrb.cz)
• 15 December 2020: CNB: Statistics on COVID Programmes/ČNB: Statistika o programech COVID (www.cnb.cz)
• 15 March 2021: CNB: Statistics on COVID Programmes/ČNB: Statistika o programech COVID (www.cnb.cz)
• 30 November 2021: CNB: Statistics of COVID Programmes/CNB: Statistiky COVID programů (www.cnb.cz)
• 15 February 2022: CNB: Statistics on COVID Programmes/ČNB: Statistika o programech (www.cnb.cz)
• 25 February 2022: Analysis of the ESIF measures responding to the COVID-19 pandemic and evaluation of the ESFI/Analýza opatření reagujících na pandemii COVID-19 a vyhodnocení EFSI (www.dotaceeu.cz)