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Entrepreneurs of the Arkhangelsk Region can contract loans up to RUB 10 million at annual interest rate not to exceed 9.95%

The Ministry of Economic Development of the Russian Federation has made changes to the Programme 8.5 to deliver concessional loans to the actors of SME. Starting from 2020, entrepreneurs of the Arkhangelsk Region who obtained loans on market-related terms can refinance them at the concessional rate of 8.5%. The essential prerequisite for the loan is, however, its focus on an investment activity.

Besides, the Programme is complemented by a new type of loan – to promote entrepreneurship development. It will help an entrepreneur to contract a loan up to RUB 10 million for up to five years at a concessional annual interest rate not to exceed 9.95%.

In respect of such loans, simplified requirements had been established. In particular, there is no restrictions on the modalities of action of the borrowers and on their tax debts.

According to the innovation policy, starting from 2020, the borrowers may be individuals which apply the special fiscal policy in relation to professional income tax, that is to say, self-employed citizens.

In addition, the changes have affected the implementation of the mechanism of portfolio securitisation regarding SME loans issued by commercial banks through issues of securities (bonds) against portfolios of concessional loans provided to businesses within the Programme.

"The listing of authorised banks is rather extensive: in the Arkhangelsk Region, nine banks take part in the implementation of the Programme 8.5. It is important that all of them have experience in lending with regard to the actors of SME. As per the 2019 year-end review, the banks of the region issued loans amounting to more than a billion roubles", mentioned Mr Ivan Kulyavtsev, the Minister of Economic Development of the Arkhangelsk Region.

It may be worth reminding that the concessional lending programme for small and medium-sized enterprises Small and Medium-Sized Entrepreneurship and Support for Individual Entrepreneurial Endeavour started in February 2019 and intended to run until 2024. The banks participating in the Programme provide loans to entrepreneurs at reduced annual interest rate not to exceed 8.5%.

What we have to know about concessional lending within the Programme 8.5%

The authorised bank may extend a loan to the borrower with an activity in one or more priority fields defined in the Rules No. 1764:

  • for replenishment of the working capital – RUB 500’000 to RUB 500’000’000 for up to three years;
  • for investment purposes – RUB 500’000 to RUB 2 billion for up to ten years.

Ministry of Economic Development of the Arkhangelsk Region