09/11/2021 - 14:09 2591

The State Fund for Entrepreneurship Support (Fund) was established on the basis of the Resolution of the President of the Republic of Uzbekistan dated August 17, 2017 № PR-3225 "On the establishment of the State Fund for Entrepreneurship Support."

The Fund operates in accordance with Decree of the President of the Republic of Uzbekistan № PD-5780 of August 13, 2019 and “Regulation on the State Fund for Entrepreneurship Support under the Agency for Entrepreneurship Development” approved by Annex 2 to the Resolution of the Cabinet of Ministers   № 77 of January 16, 2021 "On effective organization of the Agency for Entrepreneurship Development under the Ministry of Economic Development and Poverty Reduction of the Republic of Uzbekistan".

The fund provides two types of financial assistance (guarantee and compensation for part of the interest expenses).

Guarantees of up to 50% of loans provided by commercial banks to small businesses, but not more than 8 billion soums.

The fund will cover part of the interest expenses on loans of up to 10 billion soums to small businesses by commercial banks.

For loans in foreign currency, the equivalent of not more than 10 billion soums, up to 30% of the interest rate set by commercial banks, but not more than 3 percentage points, will be compensated to cover interest expenses on loans from commercial banks.

The Fund's activities are regulated by 13 Decrees and 35 Resolutions of the President of the Republic of Uzbekistan and 4 Resolutions of the Cabinet of Ministers, which set various criteria for financial assistance.

8 of these documents also provide financial assistance to loans provided before the issuance of the normative document (for exporting enterprises, manufacturers of garments, support for tourism, support for youth entrepreneurship, labor migration and industrial development of the regions).

In addition, 11 documents provide for compensation in the amount of 50% of the loan interest rate, 2 documents give up to 50% of loans issued at the Central Bank base rate, 11 documents provide up to 10%.

            As of July 1, this year, the Fund has provided financial assistance to businesses in the amount of 12,384.9 billion soums for loans worth 58,757 billion soums from 38,161 projects.

            Of this, 28,357 projects worth 39,322.1 billion soums were obliged to reimburse part of interest payments in the amount of 4,849.7 billion soums and loans worth 19,409.8 billion soums from 9,955 projects were guaranteed in the amount of 7,501.8 billion soums.

            In addition, 33.4 billion soums of credit resources were allocated for 49 projects. As a result, it is planned to create 287,258 new jobs.

Compensation is provided free of charge;

A one-time fee of 1% of the guarantee amount is paid for the guarantee (in the amount of 0.5% for exporters);

From June 1, 2020, the program "Tadbirkor" information system (www.tadbirkor.statefund.uz) was launched. All orders are processed electronically.

During the pandemic period, the Fund provided financial assistance to businesses in the amount of 5,089.7 billion soums on loans worth 24,373.6 billion soums (15,390 projects).

Of this, 11,470 projects worth 16,997.1 billion soums were obliged to reimburse part of interest payments in the amount of 2,032.1 billion soums and loans worth 7,376.5  billion soums from 3,920 projects were guaranteed in the amount of 3,057.5 billion soums.

Also, in accordance with the Decree of the President of the Republic of Uzbekistan № PD-5978 of April 3, 2020, the Fund's restrictions on the simultaneous provision of both guarantees and compensation to one borrower were lifted, and today business entities may receive warranty and compensation at the same time.

In order to expand the support mechanisms, from May 1, 2021, the Fund has introduced the following additional measures of state support of business entities with the Resolution of the President of the Republic of Uzbekistan dated April 21, 2021 № PR-5087 "On additional measures to improve the system of business support, further improve the business environment". Including:

- Compensation for interest expenses on loans in national currency to small businesses at an interest rate not exceeding 1.75 times of the base rate of the Central Bank will be provided, while maintaining its established amounts;

- Citizens registered in the information system "Single Register of Social Protection" will be guaranteed loans from commercial banks for up to 75% of the amount of loans for business initiatives, but not more than 150 times of the base amount;

- Businesses will be compensated and guaranteed by bank loans regardless of the number of loan agreements.

        At the same time, the total amount of loans for compensation should not exceed 10 billion soums, and the total amount of guarantees should not exceed 8 billion soums, but not more than 50% of the total loan amount.

 

Information Service of the

Ministry of Economic Development and Poverty Reduction