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MIL OSI Translation. Region: Russian Federation –

November 16, 2021, 14:20

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They will be able to take out a loan of up to five million rubles at 11.5 percent.

Changes have been made to the procedure for granting concessional loans to small and medium-sized businesses. Now, for companies and individual entrepreneurs who have been working for less than one year, the city will act as a guarantor for the entire loan amount and subsidize part of the loan rate. The corresponding decree was signed Sergei Sobyanin.

The concessional lending program is implemented within the framework of the national project “Small and Medium Enterprises and Support for Individual Entrepreneurial Initiatives” in accordance with the decree of the President of Russia dated July 21, 2020 No. 474.

The goal of the program is to increase the availability of debt financing for aspiring businessmen. They are traditionally associated with high risks of non-repayment of funds, which is why recently emerging companies and individual entrepreneurs practically do not receive loans from banks.

How to get a loan

To get a loan under the program, you need to contact one of the partner banks, which will assess the solvency of a potential borrower. Experts will analyze the level of income, account turnover, credit history, the presence of debts and other parameters.

In case of a positive decision, the entrepreneur will be given a loan at a preferential rate not exceeding 11.5 percent – this is the key rate of the Bank of Russia plus four percent. It will be valid for no more than 12 months. The average market rate on loans for this category of borrowers today is 18-20 percent.

The maximum size of a soft loan for start-up entrepreneurs is five million rubles. For entrepreneurs who open an additional business – 100 million rubles. In the second case, one hundred percent city security is not provided, but the borrower will be able to attract a guarantee on standard terms.

The borrower’s obligations to the bank to repay the loan will be fulfilled by the Fund for Assistance to Small Business Lending in Moscow under a surety agreement. Within 12 months, the city budget will partially compensate banks for the interest rate on the issued loan in the amount of the key rate of the Bank of Russia.

Requirements for program participants

To participate in the city program of concessional lending, a novice entrepreneur must:

– be registered as a taxpayer on the territory of Moscow;

– be a small or medium-sized business entity in any field of activity, except for credit, insurance organizations, gambling establishments, parties to a production sharing agreement, enterprises for the production or sale of excisable goods;

– be registered as a legal entity or individual entrepreneur no earlier than 12 months before the date of the loan agreement;

– at the time of registration of the loan, not be in the procedure of reorganization, liquidation, bankruptcy or suspension of activities in accordance with the Code of the Russian Federation on Administrative Offenses.

How to become a bank partner of the program

The accreditation of banks – partners of the concessional lending program will be carried out Department of Entrepreneurship and Innovative Development… Credit organizations can become partners of the program:

– with a license to carry out banking operations;

– complying with the mandatory standards established by the Bank of Russia;

– having experience in lending to small and medium-sized businesses for 24 months;

– with a share of loans from small and medium-sized businesses in the corporate loan portfolio of at least 50 percent;

– with the volume of loans to small and medium-sized businesses in the corporate loan portfolio of at least 10 billion rubles;

– with the presence of employees or a separate structural unit that provide loans to small and medium-sized businesses, as well as monitor the targeted use of these funds.

Acceptance of applications for subsidies will begin in December. The participants of the program will be able to use the borrowed funds for the development of entrepreneurial activity, replenishment of working capital or investment purposes.

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

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