Competitive selection of the bank-operator for the Preferential Loan Program starts in Kazan

(KZN.RU, June 5, Mikhail Chentsov). Another contest for selection of the bank-operator for the Preferential Loan Program starts on June 8 in Kazan. Kazan entrepreneurs who work in priority areas will be able to obtain a loan for up to 3 years, while the city will subsidize 5% of the rate for the first 2 years. Artur Valikhmetov, the chairman of the Committee for Economic Development, spoke about the terms of the program for this year at today’s Business Monday in the City Hall.

According to the speaker, priority and especially priority areas of entrepreneurial activity were approved in the municipal program for supporting small and medium-sized businesses for 2017. In particular, financial support will be provided within the framework of the Preferential Loan Program, the terms of which were formed during a series of roundtables with entrepreneurs like in previous years. During one of the meetings, entrepreneurs expressed their support for projects, related to waste processing. In addition, representatives of trade were asked to support them financially in the issue of bringing the appearance of non-stationary trade objects in accordance with standard facilities. Representatives of public catering points voiced a request for the purchase of equipment. “The listed activities were included in the list of priorities for 2017”, said A. Valiakhmetov. Private kindergartens, the tourism industry (mini-hotels, hostels), and others are among the priority areas.

The speaker also voiced the terms of the Preferential Loan Program for 2017. “Kazan entrepreneurs who work in priority areas will be able to get a loan for up to 3 years, while the city will subsidize 5% of the rate for the first 2 years. Those who work in priority areas will be able to get loans for up to 5 years. The interest rate will be subsidized at a rate of 7.5% for the first 3 years”, he said and added that the amount of the possible loan does not exceed 10 million rubles at a rate to be determined, based on the results of the competition. According to A. Valiakhmetov, this year it was possible to reduce the interest rate, which will be initial at the contest, from 18 to 13% due to a number of economic reasons.

“The summing up the results of the competition is scheduled for July 12. After the conclusion of the municipal agreement, the winning bank-operator will be ready to accept applications from entrepreneurs for the city program. We are interested in more participants at the auctions, which will result in the winning of our Kazan entrepreneurs”, concluded the speaker and urged banks to pay attention to the competition.

Ilsur Metshin, the Mayor of Kazan, noted that the list of priority sectors is not a constant and will continue to be replenished. “It is good that the Economic Development Committee is in constant dialogue with entrepreneurs, and it is very right that we are expanding this list. The fact is that new priorities and new tasks will appear in the spheres of urban economy. One of such priorities is waste processing. We are on the verge of major changes in this industry. We need to show the prospects of this direction and support organizationally and financially thanks to our program”, the Mayor shared his opinion.

Speaking about the preferential loan program, Ilsur Metshin noted that two years ago, the city subsidized 10% of the rate in order to minimize the burden on the business due to the difficulties in the economy and the crisis. “Today the situation on the market of bank services has changed. Accordingly, our amount of support has reduced. In any case, we hear from entrepreneurs that this is a serious support for small and medium-sized business. The program will be continued, as the amount that entrepreneurs received last year (365 million rubles) is a serious number. And both programs in the aggregate (preferential loan and lending – ed.) have become a serious help”, concluded the head of the Tatarstan’s capital.

Last year, 50 entrepreneurs received loans for a total amount of 365.8 million rubles, which is twice as much as in 2015. The amount of the subsidy from the city budget in 2016 amounted to more than 1 million rubles. More than half of the recipients of loans are representatives of the real sector of the economy. And since last year, industrial entrepreneurs have been granted loans for working capital.