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MIL OSI Translation. Region: Russian Federation –

At least 35 thousand SMEs will be able to receive support under the new instrument and attract over 600 billion rubles by 2024.

The government has launched a new financial instrument of state support for entrepreneurs – an “umbrella” mechanism for providing guarantees, which will open up expanded opportunities for small and medium-sized businesses to obtain debt financing. The sureties will be issued by the SME Corporation. First Deputy Prime Minister Andrey Belousov supported the project at the last meeting of the corporation’s board of directors.

This is an additional measure to support business, developed on behalf of Russian President Vladimir Putin. This mechanism will become an additional measure of state support implemented by the Government within the framework of the national project to support entrepreneurship.

The “umbrella” mechanism will provide an opportunity to obtain borrowed funds for a whole segment of entrepreneurs who previously were not available for loans for business, and will also reduce the final interest rates on attracted financing. At the same time, the surety will provide up to 50% of the loan amount, and the entrepreneur will be able to receive it instantly in the “one window” of the bank without contacting the SME Corporation, since the entire document flow between the participants is digitalized.

Another important innovation is that the commission for the guarantee will be paid by the bank, not the entrepreneur. So, borrowers with an average risk will be able to increase the amount of attracted funds through guarantees and release collateral, with a low risk – to receive credit funds on average 1–2% lower.

Based on the results of the selection of banks, which took place from August 31 to September 6, Otkritie Bank, PSB, RNKB, Sberbank, VTB and SME Bank became participants in the pilot. For partner banks, the mandatory share of investment loans secured by the guarantee of the SME Corporation is set, at least 20%. In addition, banks are committed to achieving encompassing targets – the minimum number of SMEs that must be guaranteed.

As part of the pilot project until the end of 2021, micro, small and medium-sized businesses will be able to additionally attract 20 billion rubles of credit – with the guaranteed support of the SME Corporation in the amount of 8 billion rubles.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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