Tashkent, Uzbekistan (UzDaily.com) -- The President signed Decree “On measures to improve the system of financial support for small and medium-sized businesses.”

The State Fund for Support of Entrepreneurial Activities was transformed into the “Entrepreneurship Development Company” in the form of a joint-stock company.

The authorized capital of the Company will be formed in the amount of 300 billion soums. To fulfill the assigned tasks, the Company will receive an interest-free budget loan in the amount of 1.2 trillion soums for a period of 10 years. The Company will also attract funds from international financial institutions in the amount of US$100 million.

From 1 March 2024, the Company will provide support measures for business entities, including:

for production and service projects for medium-sized businesses:

contribution to the authorized capital of the initiators in the form of real estate, equipment and other forms of shares in the amount of 15% of the cost of projects, but not exceeding 20% or 3 billion soums of the authorized capital;

acquisition of property in the amount of 70% of real estate and equipment, but not exceeding 10 billion soums, and its transfer to the initiator on the basis of a mortgage of services with the condition of accruing annual interest on the balance of the debt at a rate exceeding the main rate of the Central Bank by 4 percentage points, for a period of up to 7 years or payment in installments;

for projects of small and medium-sized businesses:

placement of financial resources in national and foreign currency in commercial banks, microfinance and leasing organizations for the allocation of loans (leasing);

provision of guarantees with a total value not exceeding 5 billion soums for loans, leases, bank guarantees and letters of credit provided in national and foreign currency by commercial banks, microfinance and leasing organizations;

provision of guarantees (portfolio guarantees) for loans within the limit, total amount and conditions established on the basis of intermediary agreements for the use of the Company’s funds concluded with commercial banks;

providing compensation to small businesses in 2024-2026 in the amount of up to 40% of the main rate of the Central Bank for a period of no more than 3 years for loans up to 5 billion soums, allocated in national currency at a rate exceeding the main rate by 4 percentage points and not exceeding 1, 75 times the main bet.

Wherein:

financial assistance in the form of a share contribution and a mortgage of services is provided for projects determined through an open competition held by the Company among medium-sized businesses that have been operating for more than 24 months and have provided permanent employment to at least 50 people for one year;

The company sells the share contributed by it as a shareholder in projects of medium-sized businesses to project initiators or other potential investors at market value within 7 years;

business entities with “good” and “excellent” credit history are provided with a guarantee for additionally allocated loans within the established total amount, regardless of their use of guarantees for previously received loans;

Also Company:

provides compensation according to the “1+2” principle initially for the first year of the loan (leasing), when business entities fulfill the plan for the number of new jobs created and increase their revenue from the sale of products (services) by at least 15% - continues to provide them in the next 2 of the year;

pays compensation through the Fund for Compensation of Interest Expenses on Loans, through transfers allocated from the State Budget, and is vested with the right to manage the funds of the Fund;

The tasks of monitoring and regulating the activities of the Company are assigned to the Central Bank.

The document also approves the “Road Map” for organizing and transforming the Company’s activities.