MIL OSI Translation. Region: Russian Federation –
E. Samarin. Mos.ru
Guaranteed support for small and medium-sized businesses is one of the key areas of the national project “Small and Medium-Sized Businesses and Support for Individual Entrepreneurial Initiatives.”
The Moscow Small Business Credit Assistance Fund has summed up the results of work for three quarters of 2020.
“Following the results of nine months, small and medium-sized businesses received more than 16 billion rubles of loans with guarantee support from the fund, which corresponds to the figures for the same period last year. 60 percent of the volume of guarantees was issued by small enterprises, 24 percent – by micro-enterprises, and 16 percent – by medium-sized businesses, “the head of the capital
Department of Entrepreneurship and Innovative Development Alexey Fursin.
According to the fund, half of the guaranteed support provided fell on wholesale and retail trade organizations, 20 percent – on manufacturing and innovative enterprises, nine percent – on organizations involved in the construction sector. Another 21 percent was distributed among companies operating in the field of transport, medicine, education, services and others.
Most of the guarantees provided by the Moscow Guarantee Fund were used to secure loans to replenish working capital. This year, the share of such loans in the total portfolio was 76 percent. In addition, entrepreneurs issued guarantees for refinancing loans, executing government contracts, investment goals and other needs. 70 banks became partners of the fund.
“Guarantee support is one of the key areas of the national project“ Small and Medium Enterprises and Support for Individual Entrepreneurial Initiatives ”. The Fund for Assistance to Small Business Lending in Moscow accounts for more than a quarter of the total volume of guarantees of regional funds. Moreover, his capital is 10 billion rubles, and the portfolio of guarantees is 20 billion. These funds today provide loans to Moscow entrepreneurs in the total amount of 40 billion rubles. In fact, this means that each ruble invested in the fund has already launched four rubles of debt financing into the economy of the capital, ”added Alexey Fursin.
In the context of the crisis caused by the pandemic, the fund is considering some types of applications under a simplified scheme, among them loans for the execution of government orders and transactions with major banks. In addition, the procedure for restructuring loan agreements has been simplified. The fund specialists consider transactions with an increase in the surety term to six months without additional financial analysis. Since March this year, loans to small and medium-sized enterprises have been restructured in the amount of 4.3 billion rubles.
For small and medium-sized businesses, there is a city program of concessional lending. If the loan is issued after April 15 of this year, the capital subsidizes up to eight percent of the loan rate, if earlier – six percent. Entrepreneurs can take advantage of both the guarantee support of the fund and the possibilities of concessional lending by applying for a loan in one of the banks participating in the program.
An application for a guarantee of the Fund for Assistance to Small Business Lending in Moscow can be issued onlineas well as through partner lenders and business service centers.
The Moscow Small Business Credit Assistance Fund (Moscow Guarantee Fund) operates under the auspices of the Moscow Department of Entrepreneurship and Innovative Development. During its existence, it issued guarantees in the amount of 90 billion rubles, and entrepreneurs received loans from creditors in the amount of 180 billion rubles. The average size of a guarantee is 19–20 million rubles.
Entrepreneurs can receive up-to-date information on business support measures and changes in legislation in the telegram channel (@subsidii_msk) “Subsidies to Moscow Entrepreneurs” created by the Department of Entrepreneurship and Innovative Development of the city of Moscow.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.