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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case CZ-2021-10/1864 – measures in Czechia

COVID - SPORT Guarantee program

Program Záruka COVID Sport

Country Czechia , applies nationwide
Time period Temporary, 01 March 2021 – 31 December 2021
Type Other initiatives or policies
Category Supporting businesses to stay afloat
– Access to finance
Author Renata Kyzlinková (Research Institute for Labour and Social Affairs)
Case created 13 April 2021 (updated 12 May 2021)

Background information

On 18 January 2020, the Government of the Czech Republic approved the COVID Sport Guarantee Program, which focuses on solving current problems of self-employed persons and small and medium-sized enterprises (SMEs) operating in the sports sector.

The program should help entrepreneurs to overcome the crisis period when most of the sports facilities are closed due to the spread of SARS-CoV-2 coronavirus and related preventive measures.

The entrepreneurs as defined above will be supported by providing a bank guarantee from Czech-Moravian Guarantee and Development Bank when asking for operating loans from commercial banks and they will also be provided by a financial contribution to interest on loans.

The program is managed by the Ministry of Industry and Trade of the Czech Republic .

Content of measure

The COVID - SPORT Guarantee programme is designed for small and medium-sized enterprises operating in the sports sector (sectors defined by CZ-NACE).

The parameters of bank guarantee are: eligible expenditure - operating costs, maximum guarantee amount up to 80%, maximum amount of guaranteed loan: up to CZK 15,000,000 (€576,923 approx.), maximum term of length: up to 3 years. The guarantee cannot be provided for an existing loan.

In addition, entrepreneurs in sports should be able to apply for a financial contribution to the bank loan interest. The contribution limit is defined as 15% of the total loan amount intended for operational costs (VAT not included) or up to CZK 1,000,000 (€38,462 approx.). in total. These subventions should be provided in line with the "de minimis" regime.

The guaranteed loan can be used for wage costs, cost of energy, rent settlement of supplier invoices, funding of receivables purchase of materials, inventories and other low-value assets.

Use of measure

Information is not available yet.

Target groups

Workers Businesses Citizens
Does not apply to workers Solo-self-employed
SMEs
Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

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

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

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

  • No involvement
  • Main level of involvement: N/A

Involvement

Social partners have not been involved in this measure.

Views and reactions

Social partners have not been involved in this measure.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      H - Transportation And Storage H49 Land transport and transport via pipelines
      P - Education P85 Education
      R - Arts, Entertainment And Recreation R93 Sports activities and amusement and recreation activities

This case is not occupation-specific.

Sources

Citation

Eurofound (2021), COVID - SPORT Guarantee program, case CZ-2021-10/1864 (measures in Czechia), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.