Ostrava supports local small entrepreneurs

8/4 2020

Postponing rent due date, remission of rent, fast financial aid up to CZK 20 000 or a grant programme up to CZK 100 000. These are the possibilities the City of Ostrava is now preparing for small entrepreneurs who cannot carry out their business activities as the consequence of the government emergency measures related to COVID-19.

Ostrava supports local small entrepreneurs

By these actions, the city wants to provide effective help to those entrepreneurs who are now forbidden to carry out their activities and have business premises in the area of Ostrava. Today, the Ostrava City Council approved two out of four measures which are supposed to solve the pressing needs of the entrepreneurs.

There has been prepared an immediate help up to CZK 20 000 to cover a part of the costs of smaller sole entrepreneurs who, because of the interruption of their activity, are in material need. Smaller entrepreneurs with annual turnover up to CZK 6 million can apply for financial aid. The financial aid is intended to cover at least partially the costs related to running the business. The maximum amount of the aid is based on the Ostrava City Council procedural authority which is restricted to approve a higher amount in such a limited time.

Further, based on today's decision, the due date of March and April rent of the sole entrepreneurs who by 13 March 2020 carried out their business activities in the premises owned by the Statutory City of Ostrava is prolonged by 3 months. Other city districts and city companies renting business premises were called to make the same decision. At the same time, the City Council suggested the possibility of remission of rent.

"We inform the lessees of the city premises about the possibility to apply for remission of a part or whole rent for the period during which the premises will be closed. The decisions on granting the remission will be made on an on-going basis. At the same time, we are collecting data from the city districts and we would like to discuss with them the application of the remission of rent in the same way" says the vice-mayor Zuzana Bajgarová and she adds: "We have called upon the company Residomo, which is together with the city the biggest provider of commercial premises for small entrepreneurs in Ostrava, to take the same action. However, we would welcome it if other providers of premises joined this call."

Further, the city is preparing a grant program to mitigate financial losses. A grant up to CZK 100 000 would be intended for smaller enterprises with annual turnover up to CZK 6 million. The grant could be used to pay rent, salaries of employees, statutory payments, energy costs, etc. The city is now preparing detailed conditions and the program should be discussed on the meeting of City Assembly in April.

The financial aid package directly addresses immediate needs and wants to provide at least a partial solution to the existential problems of smaller entrepreneurs. "We are aware, that for many entrepreneurs, interruption of their activity can also mean the end of their business. We want to help them to overcome the most difficult time. Unfortunately, the possibilities of the city are limited. However, we are ready to use tens of millions of Czech Koruna to help. The crucial thing is that the entrepreneurs do not misuse this situation and that the help will reach those who need it the most," adds the city mayor Tomáš Macura.

For applying for the grant for entrepreneurs go HERE

Contact: program100@ostrava.cz


Application for the remission of rent and lease HERE.