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Photo by M. Denisov. Mos.ru

This allowed small and medium-sized businesses to continue working in the context of the crisis caused by the pandemic.

This year, businessmen from the capital received more than 17 billion rubles from banks with guaranteed support from the city. Sergei Sobyanin announced this on his page on the social network “In contact with”…

 

As the head of the Moscow Department of Entrepreneurship and Innovative Development noted Alexey Fursin, Small Business Credit Assistance Fund of Moscowsince the beginning of the year, it has issued guarantees totaling 8.2 billion rubles, which helped entrepreneurs to obtain borrowed funds.

“This allowed small businesses to continue working and retain jobs in the crisis conditions caused by the pandemic,” he stressed.

More than half (61 percent) of the guarantees went to small businesses, nearly a quarter (23 percent) to micro businesses and another 16 percent to medium-sized companies.

Most often, entrepreneurs applied for guarantee support to obtain loans to replenish working capital (75 percent), to execute commercial and government contracts (12 percent), to refinance (seven percent) and investments (two percent).

More than half (51 percent) of those who used the guarantees of the Moscow Government are trade enterprises, 18 percent are manufacturing and innovative companies, and another 11 percent are companies operating in the service sector. Companies representing such priority sectors as construction, medicine, transport, communications received 20 percent of the guarantee support.

Fund guarantees cover up to 70 percent of the loan and help those companies that do not have enough resources to provide collateral to gain access to banking resources. About 70 lenders work in partnership with the organization.

From the beginning of November, companies from excisable industries can receive guaranteed state support. In addition, along with guarantee support, entrepreneurs can take advantage of the city’s concessional lending program: the Moscow budget subsidizes up to eight percent on loans issued after April 15, and six percent on loans issued earlier.

In total, for the entire life of the fund, with its help, entrepreneurs received more than 181 billion rubles, of which in 2019 – 26.7 billion rubles. Entrepreneurs can apply for surety through partners organizations, service centers for business or directly in the foundation itself.

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

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