Translation. Region: Russian Federal
Source: Ministry of Economic Development (Russia) – Ministry of Economic Development (Russia) –
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Small and medium businesses of the Jewish Autonomous Region have received additional opportunities to attract financing and implement investment projects. Within the framework of a special limit of "umbrella" guarantees of the SME Corporation for the Far East, an additional limit has been allocated for SMEs of the Jewish Autonomous Region in the amount of 230 million rubles. This was reported by the Minister of Economic Development of the Russian Federation Maxim Reshetnikov during a working trip to the Far East.
"The mechanism of "umbrella" guarantees is an effective tool for supporting and developing small and medium-sized businesses. It allows attracting the necessary financing even with a shortage or absence of own collateral. This is especially in demand in the regions, so the allocation of a separate limit is an important part of targeted support for local SMEs, which form a significant part of the economy of the Jewish Autonomous Region. With its help, entrepreneurs will be able to attract at least 460 million rubles," said Maxim Reshetnikov.
Sberbank and VTB became partner banks for the additional limit for the Jewish Autonomous Region. At the same time, entrepreneurs of the Jewish Autonomous Region still have access to the special limit of "umbrella" guarantees of the SME Corporation for the Far Eastern Federal District, the limits for which, in addition to Sberbank and VTB, have been extended to Alfa-Bank, Far Eastern Bank, Solid Bank and SME Bank.
Another initiative to support SMEs in the Jewish Autonomous Region was the reduction of the minimum amount for projects from the region within the framework of the Center for Support of Investment Lending of the SME Corporation – from 50 million to 10 million rubles.
"Lowering the threshold for a project to enter our Investment Lending Center will allow this tool to be used even when implementing small investment initiatives. In addition to assistance in structuring transactions, entrepreneurs will be able to receive guarantee support from the SME Corporation and regional guarantee organizations. Joint provision can amount to up to 70% of the amount of financing provided by the bank," noted Alexander Isaevich, CEO of the SME Corporation.
The "umbrella" mechanism involves providing banks — partners of the SME Corporation with guarantee limits, within which financial institutions issue loans to entrepreneurs. Such guarantees of the SME Corporation cover up to 50% of the bank loan amount. The amount of one guarantee can reach 1 billion rubles for a term of up to 10 years. The mechanism guarantees the bank the fulfillment of obligations under such a loan, thereby reducing reserves and freeing up liquidity for additional business lending.
As part of the Investment Lending Support Center (ILSC), the SME Corporation helps entrepreneurs structure an investment project for submitting a loan application to a bank and assesses the possibility of providing their guarantee as collateral. The Corporation's specialists provide recommendations on preparing a business plan and financial model, mitigating project risks based on the results of the analysis, and also provide support during the application review at the bank.
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