Small and medium-sized businesses will be able to get a loan at 3% for the staff retention and business recovery

On behalf of the Russian president Vladimir Putin, the Government of the Russian Federation is launching a new preferential loan program at 3% that is aimed at further employment maintenance and business recovery. SMEs support measures are also implemented at the regional level. The head of the region Dmitry Azarov outlined the importance of providing support to entrepreneurs, including businesses affected by the coronavirus.

The governor said that they have already made a number of decisions to support businesses: deferments, installments and almost zeroing the tax rate for entire industries that were most affected during the coronavirus period.

The Minister of Economic Development and Investment of the Samara region Dmitry Bogdanov said that last year, the program of preferential lending at 2% was very popular in the Samara region. 7.6 thousand entrepreneurs (for a total of 11.2 billion rubles) took the opportunity to get "cheap money" and write off the loan at the expense of the state. Enterprises from the affected industries will also appreciate the opportunities of the new program and will apply for preferential funds to recover their business and retain the staff.

Banks that participate in the state program will start accepting applications from March 9. Enterprises from industries that have not yet recovered from the pandemic impact and have not returned to pre-crisis indicators can take advantage of the preferential loan: public catering, culture, sports, entertainment, event management and tourism. 

The loan term is 1 year, the rate for small and medium-sized businesses – only 3%, another 6% will be paid to banks by the state. In the first 6 months there are no payments on the main debt and interest for the borrower. During the next 6 months, the loan must be repaid in equal installments on a monthly basis plus interest payments. The maximum loan amount will be determined on the basis of the minimum wage (12,792 rubles) per employee for 12 months.

MSEs will have access to the program under the main or additional OKVED codes. Medium and large enterprises – only for the main one. Applications for participation can be submitted from March 9 to July 1.

Original article on the website: Government of the Samara region.