Uzbekistan to direct 6 trillion soums and US$1.2 billion to support small businesses
Tashkent, Uzbekistan (UzDaily.com) -- The President of Uzbekistan Shavkat Mirziyoyev signed Resolution “On measures of financial and institutional support for the development of small businesses.”
From 1 October 2023, a Comprehensive Program of Continuous Support for Small Businesses will be implemented. The Business Development Bank will become the main base bank for the implementation and improvement of the Program. Here is its structure and tasks.
In 2023-2026, the following will be allocated for the implementation of the Program:
6 trillion soums of public funds;
US$1.2 billion – funds from international financial institutions.
Who can participate in the Program
The following have the right to participate in the Program by sending an online application to the Small Business Assistance Center LLC:
Individual entrepreneurs, dekhkan farms, self-employed persons, artisans, homeworkers, non-state educational organizations and small businesses providing permanent work for 3 or more people have been operating for at least one year;
legal entities and individuals who have successfully implemented their business projects within the framework of family entrepreneurship programs and have a positive credit history.
What support measures are provided for participants?
There are 4 support tools for financial support:
allocation of loans in the amount of up to 1.5 billion soums for the establishment or expansion of entrepreneurship for a period of up to 7 years (grace period - up to 2 years), on a revolving basis - for working capital for a period of up to 3 years with an annual rate exceeding the main rate of the Central Bank by 4 percentage points, and (or) provision of leasing for the purchase of fixed assets. At the same time, loans up to 100 million soums can be obtained without collateral, up to 150 million soums - with a reduction in the collateral requirement to 50%;
loan of fixed assets worth up to 1.5 billion soums with installments of up to 7 years;
contribution of a share in the form of empty state-owned objects and land areas, equipment, buildings and structures, other types of tangible assets in the amount of up to 20%, but not more than 1 billion soums in new as well as existing projects to expand production of small businesses operating in for more than 24 months, the amount of working capital of which over the last 12 months ranged from 1 to 10 billion soums, providing permanent employment for at least 10 people;
allocation of up to 2 billion soums of grant funds within the framework of state scientific programs for projects for the commercialization of innovative developments, as well as high-tech start-up projects.
Participants will also be provided with information and advice:
on issues of obtaining licenses, permits and certificates, customs and tax administration, registration of export-import transactions and contracts;
on participation in government procurement, acquisition or lease, as well as design of land plots, buildings and structures;
about current benefits and preferences, privileges and opportunities to support entrepreneurship.
Small Business Assistance Center LLC is granted the right to sell to project initiators or other potential investors the share they contributed to small business projects at market value for 7 years.
By 1 April 2024, the authorized capital of Small Business Development Fund LLC will be formed in the amount of 1 trillion soums, and in order to finance projects, the Fund will be allocated 1 trillion soums as an interest-free budget loan for a period of 10 years.
By the end of 2024, the authorized capital of the Business Development Bank will be increased to 3 trillion soums.
From 1 January 2024, loans under family business development programs will be provided for a period of up to 3 years (grace period - 6 months), with an annual rate exceeding the main rate of the Central Bank by 4 percentage points.