Guarantee and Industry Funds Present Programs at Business Spring 2017

Guarantee and Industry Funds Present Programs at Business Spring 2017

On May 28, Moscow hosted Business Spring 2017, an entrepreneurial forum organized by the city's government and the public organization Opora Rossii. The event featured expositions highlighting various aspects of business and government collaboration. A special section was dedicated to business funding.
Major exhibitors included Moscow Small Business Credit Assistance Fund, Sberbank, VTB, and Promsvyazbank. Experts from these organizations offered advice to entrepreneurs on a number of issues related to project financing, such as working capital loans, investment loans, tender lending, overdrafts, and commercial mortgage. Representatives of small companies had an opportunity to gain first-hand knowledge about cash management services, cross products and services that banks are now ready to provide to their customers.

"The Moscow SMB lending market is recovering faster than the overall Russian market, although banks continue to view it as a high-risk area. Securities issued by Moscow Guarantee Fund drive SMB lending risks down, ensuring lower interest rates and making loans more affordable to entrepreneurs. These securities cover up 70% per loan. In 2017, the fund helped Moscow entrepreneurs raise 4.7 billion rubles in loans and securities, with its share accounting for 3% of all loans provided on the Moscow SMB lending market. We are going to boost the portfolio of securities in accordance with the goals set up for us by local and federal authorities,” said Anton Kuprinov, the executive director of Moscow Guarantee Fund. 

Another prominent exhibitor, Moscow Industry and Entrepreneurship Fund, presented its concept of
concessionary loan-based funding. According to the fund's general manager Mikhail Lopukhov, the organization will be offering 5-year loans in the range from 10 to 50 million rubles at an interest rate of 5% per annum. The fund will cover up to 70% of project financing costs, while the remaining 30% must be provided by the borrower.

“We actively cooperate with Moscow Guarantee Fund and believe that our programs should be developed symbiotically as they perfectly complement each other. Working with us, the borrower can raise missing funds under guarantee coverage from the guarantee fund,” said Lopukhov.

Suren Vardanyan, the vice president of Moscow Chamber of Commerce and Industry, suggested using the chamber's resources to inform entrepreneurs on government-incentivized financing opportunities.

“The interaction of two funds will drive greater availability of loans for entrepreneurs, with manufacturing companies at the focal point,” said Vardanyan.