$ 300 million – in support of business

On April 19, the President of the Republic of Uzbekistan adopted a resolution "On measures to further expand the mechanisms for financing entrepreneurial projects in the regions", which served as an additional incentive for small and medium-sized businesses. We are talking about solid financial support for entrepreneurial projects implemented in the regions, ensuring the timely implementation of entrepreneurial initiatives.

According to the document, commercial banks of the republic are allocated a credit line in the equivalent of 300 million US dollars at the expense of the Reconstruction and Development Fund – to finance the activities of small businesses.
Any entrepreneur can get a loan, however, its size depends on the working hours of the enterprise.
less than 6 months – up to 1 billion soums;
6-12 months – up to 2 billion soums;
1-2 years – up to 3 billion soums;
2-3 years – up to 4 billion soums;
over 3 years – up to 5 billion soums.
A preferential loan is allocated for all projects in the field of production and services, but there are restrictions. Within the framework of this initiative, loans are not available to initiators of projects in the field of construction, trade, intermediary activities, manufacturers of excisable goods, in addition, for state-owned enterprises and legal entities with a state share in the authorized capital, as well as for replenishment of working capital.
But entities that meet the criteria will be able to get a loan at 14% per annum, for 5 years (including 2 years of grace period).
It is important to note a significant innovation – at least 70 percent of the loan will be allocated to those entrepreneurs who carry out their business on the territory outside the city of Nukus, administrative centers of regions and cities of regional subordination. Thus, the development of business and infrastructure, the creation of jobs in rural areas is stimulated.
The Ministry of Investment and Foreign Trade, which is charged with coordinating the effective use of the credit line allocated under this document, is carrying out a number of tasks to implement its provisions. In particular, work is underway to ensure the allocation of credit line resources by regions and commercial banks based on needs, measures are being taken to develop high-quality project and pre-project documentation by design factories and local groups in cooperation with commercial banks. A mechanism is also being introduced to implement systematic monitoring of the effective and targeted use of credit line funds by all participants in the process.
To prevent various kinds of delays, the document provides for the placement of resources requested by banks within three days after the receipt of applications.
As expected, as a result of the implementation of investment projects financed under this Decree of the Head of State, new jobs will be created – mainly in rural areas of the republic, the introduction of innovations and new technologies will be intensified, new modern production facilities will be launched.

Press service of the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan