From 1 November 2024, entrepreneurs and small businesses can apply to NRB for an interest-free loan called „Expansion Flood“, with a grant component from the Operational Programme Technology and Applications for Competitiveness (OP TAC), with an allocation of up to CZK 1.5 billion (EUR 60m). The NRB is preparing a further increase of up to CZK 1 billion (€ 40m) in flood relief for the Moravian-Silesian Region in cooperation with the Ministry of the Environment under the OP of Just Transition. During November, the NRB will also start accepting applications for loan guarantees from commercial banks, where the expected allocation of support is up to CZK 3.5 billion (EUR 140m).
“Helping SMEs and their employees in the affected areas to get through the worst of the period – that was the main motivation for the government to initiate the two NRB programmes. We have been communicating with our government colleagues from the first day of the floods with representatives of the business community and subsequently we also went to those areas to talk to the affected citizens and entrepreneurs and find out on the spot what assistance they need from the government. Both programmes of the NRB are thus a solid part of the overall scheme of state assistance. The MoF also helped the affected entrepreneurs by providing tax relief and the government also decided to compensate companies whose employees could not come to work due to the high water,” said Finance Minister Zbyněk Stanjura, heading also the working group for coordinating the flood damage.
“In cooperation with the MIT, MoE and MoF, we have prepared a programme for small and medium-sized entrepreneurs to help them restart their businesses after the floods. The total amount of assistance that the state, through the National Development Bank, will provide to SMEs to rebuild their businesses after the floods, may reach up to CZK 6 billion (EUR 240m),” says Tomáš Nidetzký, Chairman of the Board of Directors of the NRB.
“Today we launched special programs for small businesses in the affected areas to help them repair damage and rebuild their businesses after the September floods. These include both preferential loans and (state-backed) guarantees on commercial loans. I am glad that in cooperation with the National Development Bank we have managed to offer quick and effective assistance to those who need it most,” said Minister of Industry and Trade Lukáš Vlček.
The Ministry of the Environment has also secured the funding reaching CZK 1 billion (EUR 40m) for the use via preferential loans for entrepreneurs affected by the floods. “The Ministry of the Environment is already providing financial assistance to households and municipalities affected by the floods. Now we want to use CZK 1bn to assist SMEs to rebuild their businesses, especially in the Moravian-Silesian Region, which was badly damaged by the September floods. Thanks to the Operational Programme Just Transition, which helps regions like the Moravian-Silesian one to transform and deal with the impact of the shift away from coal, we can offer flood-damaged businesses preferential loans from the Transformation Loan (programme), where additional allocation of CZK 1bn for entrepreneurs from the so-called coal regions was secured. In cooperation with the NRB and the MIT, we will now make its terms even more favourable than those of standard commercial loans. The preferential loans will be granted for the acquisition of technological equipment and facilities, for investments in business infrastructure and for the acquisition of production machinery and equipment as well. This support will enable a favourable form of financing for applicants, which will be less administratively demanding and will be relatively quickly available,” said Environment Minister Petr Hladík.
Interest-free Expansion Floods loan
As of November 1, 2024, the NRB is accepting applications from small businesses affected by the flood in the Flood Expansion Program. The investment loan will enable them to finance the recovery and further development of their business. “We have prepared the programme in view of the complicated situation in which companies and entrepreneurs affected by the floods have found themselves. The NRB loan is therefore interest-free, together with a grant component. Thanks to it, we can forgive part of the repayments to entrepreneurs, up to 25%of the loan principal, providing that conditions of the programme are met. In addition, it is also possible to postpone repayment of the loan for up to 3 years,” says Michal Nebeský, a member of NRB’s Board of Directors with responsibility for business.
Loan parameters:
- Preferential loan amount: CZK 0.5-100m (EUR 20k-4m)
- Possibility to forgive up to 25% of the loan repayments
- Interest-free
- Grace period of up to 3 years
- Maturity of up to 15 years
- Up to 90% of all eligible expenses of the project
At the same time, the Guarantee 2024-2030 programme is also under preparation, which will enable the NRB to guarantee loans from commercial banks to businesses affected by the floods. The NRB is going to start accepting applications under this programme during November. “In the first phase, this guarantee programme will address only flood-affected entrepreneurs. It will then move to a standard guarantee scheme during 2025 and will be opened to all SMEs,” concludes Michal Nebeský.
