I. Metshin: "Fairness and transparency - these are the basic conditions for business support"

(Kazan City KZN.RU, May 10). In Kazan the implementation of support program for small and medium businesses, which has been supplemented by new measures this year, successfully started. The businessmen can participate in concessional lending on more favorable terms than before. All these measures are intended to support business in the city and contribute to the development of high-priority sectors. Today on the last Business Monday the Mayor of Kazan Ilsur Metshin urged businessmen not to look for tricks in the program of preferential lending, but to take advantage of its unprecedented conditions.

"Zero interest rate, even if only for the first year of crediting - is not just good news, it is a kind of a bomb. Previously we could not even dream of such conditions, - I. Metshin said. - Although, of course, small and medium business is not in fabulous conditions now, it has to survive, and certainly there will be those who will seek some pitfalls. But there is no trick here, support for business is our clear position".  The Mayor recalled that a number of changes were made in the program of preferential lending. For example, the maximum loan amount was increased to 10 million rubles, and the term of payment - up to 5 years. However, the Mayor noted that all these measures are primarily aimed at support for priority sectors of business - such as the souvenir trade, the opening of hostels and private kindergartens.

The Deputy Head of the Executive Committee for Economic Development Ivan Kuznetsov made a report on how concessional lending program is realized in the city. He recalled that for enterprises operating in the high-priority for urban development areas in the first year interest rate will be fully compensated by means of the city budget, for the rest the interest rate at the expense of subsidies in the first two years the soft loan will cost 2.3% per annum.

In the competition for the selection of the bank-operator for city concessional lending program for SMB six banks participated ( "Bank of Kazan", "Sberbank", "Ak Bars Bank", "Avtogradbank", "Energobank", "Tatsotsbank"). "Tatsotsbank" offered the most favorable conditions for the entrepreneurs and the lowest interest rate on the loan offered to 12.3% per annum. As a result, "Tatsotsbank" is selected as the operator of urban concessional lending program for SMB.

Recall, businesses operating in priority urban development areas can get soft loans. In 2016 the category of high-priority business areas was highlighted. These include organizations of private kindergartens, manufacture of articles of folk art and crafts, the organization of hostels and hotels. Entrepreneurs engaged in these kinds of businesses will be able to get a soft loan for up to 5 years. During the first year of the contract the credit interest rate on the loan will be fully subsidized from the budget of Kazan, and in the second and third years the budget compensates 10% rate on the loan. Thus, in the first year the entrepreneur is provided a zero rate on the loan, and in the next two years the cost of credit will be only 2.3% per annum.

Entrepreneurs working in the priority areas will receive loans for up to 3 years. Kazan budget subsidizes 10% of the bank rate during the first two years of the loan agreement. The list of priority areas includes manufacturing, public utilities, education, health care, domestic tourism, cultural industries, physical culture and sports, innovation, consumer services.

In addition, representatives of small and medium businesses will receive preferential loans for the purchase of municipal property at auction. The interest rate on loans will be 0.3%, since the city's budget compensates 12% per annum on the loan within two years of the loan agreement.

Application procedure for the provision of credit is simplified. To obtain a loan the entrepreneur should fill an online application form on the bank-operator site, after which he will invited to the bank to supply the basic package of documents for a loan. The list of required documents can be found on the website kzn.ru. Further the bank itself sends to the Executive Committee of Kazan to review the necessary documents. The second time entrepreneur will have to come to the bank to sign the contract and get a loan.