This is a very dynamic and unprecedented situation, so nobody knows for sure what will happen. So below is more of an opinion rather than known fact.
As it currently stands, travel into the 26 EU states as well as Iceland, Liechtenstein, Norway and Switzerland, is prohibited for 30 days and as such travel is banned for all non-EU citizens or residents (except UK citizens).
Assuming your travel request falls within this period then the following is likely.
- They could reject you current application and tell you to reapply in
the future. That this rejection will not be looked upon negatively
when you apply, and you should get a full refund of any fees paid.
- Or they could put your application on hold and ask you in the future
if you wish to proceed or not with new dates. If not, then you would
get a full refund.
- They could approve your visa, but issue it with different dates and/or
an extended travel period. e.g. instead of 90 in 180 days, then 90
in 270 days.
If your travel request is for later than this period then the following could occur:
- Issue the visa but advise you that you will only be able to travel if
the borders reopen. If the borders don't reopen in time, you have to
apply again. You may or may not have to pay the fees again in such a case.
- Stop processing and ask you if you wish to postpone or withdraw your
application, and refund the fees
- Stop processing temporarily. Continue processing when the situation
improves, if your application is far enough in the future
- Reject the application, and tell you to reapply again when the situation is clearer. Refund the fees.
If the visa is rejected due to the Corona shutdown, then it will not be looked upon negatively when you apply again in the future and you should get a full refund.