Government Helps Entrepreneurs Receive Close to 10 Billion Rubles in Loans

In the first six months of 2019, SMBs received loans worth nearly 10 billion rubles, thanks to the government guarantees provided by the Moscow Small Business Lending Assistance Fund. The fund is supervised by the Department of Entrepreneurship and Innovative Development. 
 



“The fund is becoming more efficient: the ratio of its capital (10 billion rubles) to the value of issued guarantees is 1.93, while a year before it was 1.76. That means that the fund can help entrepreneurs receive more loans than previously. That's the best ratio among regional funds,” said Alexey Fursin, head of the department.

In the second quarter, the fund issued guarantees worth 19.5 billion rubles, which is a 14% increase over the same period last year. The majority of guarantees (58%) were provided to small businesses, followed by micro enterprises (35%) and medium-sized companies (7%). In terms of sectoral breakdown of recipients, the largest by far was represented by the commerce sector (54%), followed by manufacturing and innovation (17%), and construction (8%). Other sectors include services, healthcare, and education.

Since its inception, the Moscow Small Business Lending Assistance Fund has issued guarantees worth more than 70 billion rubles. Thanks to this, local companies were able to obtain 145 billion rubles in loans from banks.

The fund helps SMBs obtain financing on attractive terms and for longer periods than the market average. Thus, short-term deals of up to one year accounted for only 13% of the guarantees, 67% were issued for a period of one to three years, 12% for a period of three to five years, and 8% for a period of more than five years. The average guarantee is worth 17 million rubles.

The guarantee covers up to 70 percent of a loan and cannot exceed 100 million rubles. Applications for guarantees are accepted at the fund as well as in business service centers throughout Moscow.

Source: mos.ru

12 july 2019