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John opened a bakery where he makes pies according to old grandmother's recipes. Unexpectedly for him, the products became mega-popular. Not so long ago, he opened a second bakery "Hole from a bagel" in another area of the city, but it is already clear that this is not enough. Demand clearly exceeds supply. John is thinking of creating a whole chain of cafes and bakeries, but this requires money. He has heard about concessional small business loans and is trying to figure out how to get them.
The state is ready to support small and medium-sized enterprises in various ways. Businessmen can get a loan guarantee (John has already used this method ), lease equipment on special terms, or get a soft loan.
Now John needs not only to buy equipment, but also to rent new premises, hire bakers and sellers, and increase purchases of raw materials. He reasoned that this could be done with money received on credit at a preferential rate.
How much is the preferential rate?
There are several concessional lending programs for small and medium-sized businesses.
Program - Loan amount - Period of validity of the preferential rate
Who issues - Interest on a loan
Concessional lending program for SMEs of the Ministry of Economic Development
From $ 5000 to $ 2 million for investment purposes or up to $ 100000 to replenish the turnover
Investment loan - up to 10 years; negotiable - up to 3 years
Banks participating in the program - Up to the key rate of the Bank
State support program for SMEs of the Ministry of Economic Development
Up to $ 100000 - Up to 3 years
State MFIs
From 0.5 to 2.5 of the key rate of the Bank
SME Lending Incentive Program of the SME Corporation
From $ 50000 to $ 1 million (in total, within the framework of the program, you can take up to $ 4 million)
Up to 3 years
Banks - partners of the SME Corporation 9.1 to 10.1%
Lending incentive program with the participation of state-owned MFIs
Up to $ 100000
Up to 3 years
State MFIs
Up to 14.4%
Under the concessional lending program for small and medium-sized businesses, banks issue loans at a rate that cannot exceed the key rate of the Bank by more than 2.75 percentage points (pp). Its current value can be found on the regulator's website. For example, in January 2021 it was 4.25%, that is, the interest rate for the state program was within 7%.
Companies, individual entrepreneurs and self-employed are eligible to participate in this program. If they have already taken out an investment loan at the usual market interest, then they can refinance it at a preferential rate.
The state program also provides for a special type of concessional loan - for the development of entrepreneurial activity. It can only be obtained by self-employed and micro-enterprises (the number of employees does not exceed 15 people, and the annual revenue is 2 million $). The interest on such a loan is higher - up to 9.95% per annum. The amount cannot exceed $ 150000, and the term is 5 years. But the requirements for borrowers are minimal - they are spelled out in a government decree.
If you need a small amount, up to $ 100000, it makes sense to contact a state microfinance organization (MFO) in your region (the state's share in the capital of such MFOs is at least 50%). These MFOs participate in a subsidy program from the federal and regional budgets and provide loans to entrepreneurs at low rates. Interest can range from 0.5 to 2.5 of the key rate of the Bank of Russia. Its current value can be found on the regulator's website. As of January 2021, it was 6.25%. Detailed terms of the program can be found in the order of the Ministry of Economic Development .
The self-employed can also count on a concessional loan under this program - up to $ 150000.
Entrepreneurs can also count on the SME Corporation's SME lending incentive program. The rates on it are slightly higher: from 9.1 to 10.1%. The minimum loan amount is 3 million rubles.
The preferential rate for this program is given only for 3 years, but the loan itself can be issued for a longer period. This means that the rate may change in three years.
If public MFIs run out of their own funds, there is another option. The fact is that state-owned MFOs can also receive loans from banks - partners of the SME Corporation, and then issue loans to small and medium-sized businesses. In this case, the rate will not exceed 14.4% per annum.
There are also commercial MFIs for entrepreneurial finance. They can also issue microloans to entrepreneurs at a low percentage. Such loans can be subsidized, for example, by large local enterprises that are interested in the development of small and medium-sized businesses in their region. The rate and other conditions of such loans must be specified in each MFI separately.
Who can count on concessional financing?
To qualify for soft loans and loans, companies and private entrepreneurs must meet several mandatory requirements:
Loans at a rate of 10.1% through the SME Corporation can be obtained by small and medium-sized enterprises of any industry.
On preferential loans and loans at 9.1% (under the program of the SME Corporation) and at the key rate of the Bank (under the program of the Ministry of Economic Development), entrepreneurs who work in priority areas for the state can count on:
A loan for the development of entrepreneurial activity at 9.95% can be obtained by self-employed and micro-enterprises of any field of activity.
If you decide to take out a loan from a commercial MFI for entrepreneurial finance, then they may have their own requirements for borrowers.
What can you get a concessional loan for?
Soft loans and loans are issued for specific purposes. For example, for investments in production - the purchase of new equipment or premises, reconstruction or construction of a workshop. Up to 30% of the investment loan can be spent on operating expenses if they are related to the implementation of the project. For example, John has the right to buy flour and spices for a new type of buns on a part of the investment loan.
You can take a loan to replenish the turnover and use this money, say, for the purchase of a new batch of raw materials or the salaries of employees.
You have the right to use a loan for the development of entrepreneurial activity at your discretion.
How to get money for state programs?
Concessional loans for small and medium-sized businesses are issued in banks - partners of the SME Corporation and in banks - participants in the program of the Ministry of Economic Development.
Small loans at preferential rates are available from microfinance business finance organizations. There are about 200 of them throughout the country, including those where there are no bank offices involved in SME support programs.
Some of these MFIs are state-owned. In them, interest can be minimal, since loans are issued at the expense of the budgets of a country, region or city. You can check the state's share in the capital of MFOs on the website of the Federal Tax Service.
The state is ready to support small and medium-sized enterprises in various ways. Businessmen can get a loan guarantee (John has already used this method ), lease equipment on special terms, or get a soft loan.
Now John needs not only to buy equipment, but also to rent new premises, hire bakers and sellers, and increase purchases of raw materials. He reasoned that this could be done with money received on credit at a preferential rate.
How much is the preferential rate?
There are several concessional lending programs for small and medium-sized businesses.
Program - Loan amount - Period of validity of the preferential rate
Who issues - Interest on a loan
Concessional lending program for SMEs of the Ministry of Economic Development
From $ 5000 to $ 2 million for investment purposes or up to $ 100000 to replenish the turnover
Investment loan - up to 10 years; negotiable - up to 3 years
Banks participating in the program - Up to the key rate of the Bank
State support program for SMEs of the Ministry of Economic Development
Up to $ 100000 - Up to 3 years
State MFIs
From 0.5 to 2.5 of the key rate of the Bank
SME Lending Incentive Program of the SME Corporation
From $ 50000 to $ 1 million (in total, within the framework of the program, you can take up to $ 4 million)
Up to 3 years
Banks - partners of the SME Corporation 9.1 to 10.1%
Lending incentive program with the participation of state-owned MFIs
Up to $ 100000
Up to 3 years
State MFIs
Up to 14.4%
Under the concessional lending program for small and medium-sized businesses, banks issue loans at a rate that cannot exceed the key rate of the Bank by more than 2.75 percentage points (pp). Its current value can be found on the regulator's website. For example, in January 2021 it was 4.25%, that is, the interest rate for the state program was within 7%.
Companies, individual entrepreneurs and self-employed are eligible to participate in this program. If they have already taken out an investment loan at the usual market interest, then they can refinance it at a preferential rate.
The state program also provides for a special type of concessional loan - for the development of entrepreneurial activity. It can only be obtained by self-employed and micro-enterprises (the number of employees does not exceed 15 people, and the annual revenue is 2 million $). The interest on such a loan is higher - up to 9.95% per annum. The amount cannot exceed $ 150000, and the term is 5 years. But the requirements for borrowers are minimal - they are spelled out in a government decree.
If you need a small amount, up to $ 100000, it makes sense to contact a state microfinance organization (MFO) in your region (the state's share in the capital of such MFOs is at least 50%). These MFOs participate in a subsidy program from the federal and regional budgets and provide loans to entrepreneurs at low rates. Interest can range from 0.5 to 2.5 of the key rate of the Bank of Russia. Its current value can be found on the regulator's website. As of January 2021, it was 6.25%. Detailed terms of the program can be found in the order of the Ministry of Economic Development .
The self-employed can also count on a concessional loan under this program - up to $ 150000.
Entrepreneurs can also count on the SME Corporation's SME lending incentive program. The rates on it are slightly higher: from 9.1 to 10.1%. The minimum loan amount is 3 million rubles.
The preferential rate for this program is given only for 3 years, but the loan itself can be issued for a longer period. This means that the rate may change in three years.
If public MFIs run out of their own funds, there is another option. The fact is that state-owned MFOs can also receive loans from banks - partners of the SME Corporation, and then issue loans to small and medium-sized businesses. In this case, the rate will not exceed 14.4% per annum.
There are also commercial MFIs for entrepreneurial finance. They can also issue microloans to entrepreneurs at a low percentage. Such loans can be subsidized, for example, by large local enterprises that are interested in the development of small and medium-sized businesses in their region. The rate and other conditions of such loans must be specified in each MFI separately.
Who can count on concessional financing?
To qualify for soft loans and loans, companies and private entrepreneurs must meet several mandatory requirements:
- the business is registered in your country;
- the company fits the definition of small and medium-sized business (revenue for the last calendar year does not exceed 2 billion rubles, and the number of employees is 250 people);
- the company is included in the Unified Register, and the status of a self-employed bank or MFO will be checked by its TIN;
- arrears in taxes, fees and other obligatory payments do not exceed $ 50 thousand;
- if the company has already taken loans or loans with a state guarantee, then there were no delays on them;
- the company has no wage arrears to its employees;
- the company does not go through bankruptcy proceedings.
Loans at a rate of 10.1% through the SME Corporation can be obtained by small and medium-sized enterprises of any industry.
On preferential loans and loans at 9.1% (under the program of the SME Corporation) and at the key rate of the Bank (under the program of the Ministry of Economic Development), entrepreneurs who work in priority areas for the state can count on:
- Agriculture and services in this area
- Manufacturing, including agricultural processing and food production
- Building
- Domestic tourism
- Information and communication
- Transport and storage
- Health care
- Education
- Culture and sports
- Science and technology
- Hotel and restaurant business
- Domestic services
- Retail and wholesale
- Renting out property other than land and housing (excluding leasing)
- Collection, disposal and recycling of waste
- Production and distribution of electricity, gas and water, water supply and sewerage
A loan for the development of entrepreneurial activity at 9.95% can be obtained by self-employed and micro-enterprises of any field of activity.
If you decide to take out a loan from a commercial MFI for entrepreneurial finance, then they may have their own requirements for borrowers.
What can you get a concessional loan for?
Soft loans and loans are issued for specific purposes. For example, for investments in production - the purchase of new equipment or premises, reconstruction or construction of a workshop. Up to 30% of the investment loan can be spent on operating expenses if they are related to the implementation of the project. For example, John has the right to buy flour and spices for a new type of buns on a part of the investment loan.
You can take a loan to replenish the turnover and use this money, say, for the purchase of a new batch of raw materials or the salaries of employees.
You have the right to use a loan for the development of entrepreneurial activity at your discretion.
How to get money for state programs?
Concessional loans for small and medium-sized businesses are issued in banks - partners of the SME Corporation and in banks - participants in the program of the Ministry of Economic Development.
Small loans at preferential rates are available from microfinance business finance organizations. There are about 200 of them throughout the country, including those where there are no bank offices involved in SME support programs.
Some of these MFIs are state-owned. In them, interest can be minimal, since loans are issued at the expense of the budgets of a country, region or city. You can check the state's share in the capital of MFOs on the website of the Federal Tax Service.
- Make sure that your business is included in the Unified Register of Small and Medium Enterprises. Information in this register should get automatically based on information from the Unified State Register of Legal Entities, Unified State Register of Legal Entities and tax accounting data, but it is better to check this before going to the bank.
- Prepare a package of documents that will confirm that your business meets the criteria of the programs: you have income, turnover and the required number of employees, and among the priority industries.
- Contact a bank that is a partner of the SME Corporation or a bank that participates in the program of the Ministry of Economic Development or a state MFO. They will examine your documents and may ask you to additionally obtain a government guarantee or loan guarantee.
- Wait for approval and get a loan or loan at a preferential rate.