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MIL OSI Translation. Region: Russian Federation –

November 21, 2021, 09:35

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Photo by E. Samarin.

Now, aspiring entrepreneurs can join the city’s concessional lending program.

About 25 thousand small and medium-sized businesses have taken advantage of various support measures this year. This was reported by Sergei Sobyaninin an interview with the program “Week in the City” on the TV channel “Russia 1”.

“Just this week, we adopted another package of support measures aimed at enterprises that are just being created, at micro-enterprises, designed for start-up businessmen and individual entrepreneurs,” the Moscow Mayor said.

According to him, banks are reluctant to lend to newly created enterprises or even refuse them financial support. Therefore, the city created its own guarantee fund to act as a surety for such loans. This will also reduce interest rates on loans by at least one and a half times.

According to Sergei Sobyanin, today banks offer loans to small businesses at 18–20 percent per annum.

Moscow entrepreneurs received 16.5 billion rubles of loans with guarantee support

Help for novice businessmen

New measures to support start-up entrepreneurs are that 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 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.

To get a loan, entrepreneurs 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. The maximum size of a soft loan for start-up entrepreneurs is five million rubles.

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

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