EGAP-guaranteed credit scheme
for exporters and their suppliers

What companies is the COVID Plus Scheme intended for?

  • The company’s exports account for at least 20%.*
  • It has at least 250 employees.**
  • EGAP gives the company a credit rating of at least B/B-.*
  • The company does not draw on other COVID support schemes.
  • The company’s line of business is not in tourism, transport, games of chance, or betting.

What is the basic setup of the COVID Plus Scheme?

  • The amount of credit ranges from CZK 5 million to CZK 2 billion (up to a maximum of 25% of sales turnover*).
  • EGAP guarantees up to 80% of the credit (up to 70% for those with a B- rating).
  • The guarantee lasts for up to 3 years for credit covering operational financing.
  • An investment loan has a maximum guarantee period of 5 years.
  • The credit pricing starts as low as 1.5% p.a.
  • The price of the guarantee ranges from 0.42% p.a. to 2.19% p.a., depending on the duration of the credit and the credit rating scored according to the EGAP scale.

* * In relation to the 2019 financial situation.
** If a client does not meet this criterion independently, the number of employees of the client’s economically connected group may be factored into the calculation.

I’m interested in operational financing under the COVID Plus Scheme


How is compliance with the headcount criterion assessed?

The minimum number of employees, set at 250, need not be met for each of the applicant’s individual entities. The assessment of the headcount criterion takes into account the number of employees in the applicant’s entire economically connected group, i.e. this number of employees may also include the employees of controlling and controlled entities and of entities controlled by the same controlling entity. This approach is in keeping with Commission Regulation (EU) No 651/2014 of 17 June 2014.

Can I obtain COVID Plus Guaranteed credit for borrowings granted by multiple banks?

YES. The guarantee is available for loans taken out at multiple banks. However, you must ensure that the total amount of guaranteed financing is no more than CZK 2 billion for the borrowings of a single economically connected group.

When is the deadline for COVID Plus Guaranteed credit applications and can I apply for an increase at a later date?

When you apply for COVID Plus Guaranteed credit, please bear in mind that credit may be granted only up to 31 December 2020. The COVID Plus Guarantee Agreements must also be signed with EGAP by that date. Another limiting factor may be EGAP’s total insurance capacity allocated to the scheme, which is currently set at CZK 142 billion for 2020. Therefore, we recommend that you do not delay in applying for credit.

I am planning to apply for credit under the COVID III Scheme. Can I apply for COVID Plus Guaranteed credit at the same time?

NO. According to Government Regulation No 215/220 (the “Government Regulation”), the COVID Plus Guarantee may only cover the borrowings of entities who are not drawing on any other COVID-19-related public support instrument provided in the form of credit guarantees or interest rate subsidies for the same underlying credit. Credit applicants may therefore choose only one of the schemes available.

Can I use COVID Plus Guaranteed credit to repay any of my existing loans?

This is a matter that requires consideration on a case-by-case basis. It is possible under certain conditions. Please contact us to discuss your specific situation.

If I apply for COVID Plus Guaranteed operating credit with a standard one-year maturity, will it be possible to extend that maturity for another year, since this is usual for operating credit facilities?

The maturity of COVID Plus Guaranteed credit must be specified at the beginning of the contracting process for the credit agreement and the Guarantee agreement. The legislation as it stands does not allow a Guarantee to be renewed after the one-year period has ended. If operational financing needs to be secured for a longer period, it would evidently be more appropriate to apply for a Guarantee over a longer time (operational financing has a maximum maturity of 3 years). Borrowers have the option of repaying their COVID Plus Guarantee credit at any time. The European Commission’s Regulation aims for clients and banks to be motivated to switch to financing under market conditions without state support as soon as possible.

How is the granting of the credit and the COVID Plus Guarantee assessed/approved?

Eligibility for COVID Plus Guaranteed credit is assessed by the bank. The right to a COVID Plus Guarantee is assessed by EGAP according to criteria laid down by the Government Regulation (see Section 3). The criteria include the requirement that the borrower’s creditworthiness be scored at a minimum of B-.

How much does COVID Plus Guaranteed credit cost?

The fee for issuing a COVID Plus Guarantee and the maximum credit rate charged by the financing bank are laid down by the Government Decree and are listed in the table below:

EGAP rating
Guarantee premium
first year
Guarantee premium
second and third year
Guarantee premium
fourth and fifth
B+ or better 45 bps 90 bps 180 bps
B 60 bps 120 bps 200 bps
B- 114 bps 175 bps 219 bps
Credit maturity 1 year 2-3 years 4-5 years
Maximum interest margin 1,5% 2,5% 3,5%