Loans at 1% and educational programmes: how Tatarstan saving businesses in conditions of COVID-restrictions

Applying for grants

The measures to curb the increase in the incidence of coronavirus somehow lead to problems for businesses. For example, after the introduction of QR codes, the attendance of shopping centres and catering establishments has decreased. As a result, traffic and revenue are falling, and the businesses are in a state of protracted and painful death. The representatives of the republic's leadership told about what measures of support from the authorities can be used by Tatarstan entrepreneurs.

First Deputy Minister of Economy of Tatarstan Rustem Sibgatullin immediately started with federal support measures — the expanded programme of preferential lending FOT 3.0 for businesses and socially oriented NGOs affected by Covid-19 restrictions, and the grant programme in the amount of one minimum wage per employee. They can apply for these support measures starting from 1 November.

Entrepreneurs have time to apply for grants by December 15 inclusive. It is possible to do this remotely, through personal account on the website of the Federal Tax Service, or by printing and sending an application to the tax service by mail. The first method, as Sibgatullin noted, is preferable — this way the application will be processed faster.

“It is important that businesses will be exempt from taxes from the grants received. If an entrepreneur decides to send a grant to pay salaries to his employees, he will not have to pay personal income tax and insurance premiums from this amount," Sibgatullin clarified.

Grants at the rate of one minimum wage per employee can be received by entrepreneurs engaged in 21 areas:

1. activities of bus stations;
2. activities in the field of film demonstration;
3. museum activities;
4. zoo activities;
5. physical culture and wellness activities;
6. activities of sanatorium-resort organisations;
7. additional education for children and adults;
8. provision of day care services for children;
9. organisation of conferences and exhibitions;
10. washing and dry cleaning of textile and fur products;
11. provision of services by hairdressers and beauty salons;
12. dental practice;
13. activities for the provision of places for temporary residence;
14. activities for the provision of food and beverages;
15. activities of travel agencies and other organisations providing services in the field of tourism;
16. creative activity, activity in the field of art and entertainment organisation;
17. activities in the field of sports, recreation and entertainment;
18. repair of computers, personal items and household items;
19. activities of other land passenger transport;
20. activities of road freight transport and transportation services;
21. activities of inland water passenger transport.

FOT 3.0

The next support measure launched at the federal level is concessional lending at 3% for any goals justified by the borrower, it is also the FOT 3.0 programme. It is also possible to apply for a preferential loan from 1 November.

“The loan amount is calculated based on one minimum wage per employee multiplied by 12 months. The loan term is 18 months, including a delay in the payment of interest and the loan body for six months, after which the loan repayment period will be 12 months in equal parts," Sibgatullin said.

Participants of the FOT 2.0 and the first FOT 3.0 programmes, as well as companies from six new, added areas will have the opportunity to receive a preferential loan: additional education for children and adults, day care services for children, household services, dry cleaning, dentistry, as well as hairdressers and beauty salons. In total, it includes 17 types of activities. Loans can also be obtained by entrepreneurs registered from July 1, 2020.

Tatarstan will help retail trade and self-employed

Entrepreneurs who are not affected by federal support measures will receive assistance at the republican level. The authorities are launching a micro-loan at 1%, which turned out to be in demand back in 2020. At the same time, those who issued it earlier will get a deferral for repayment.

“In general, this is trade, for which we record most of the appeals," Sibgatullin clarified the recipients of support. He also noted that over 3 billion rubles have been allocated in Tatarstan to support small and medium-sized businesses.

In particular, the offer is intended for retail entities in non-specialised stores, as well as stores selling information and telecommunications equipment, other household products, cultural and entertainment purposes, other vehicles, except passenger, in specialised stores.

The micro loan is provided by the Entrepreneurship Support Fund of the Republic of Tatarstan. According to its general director Aydar Salikhov, first of all, the product is designed for SMEs engaged in retail trade, which did not get into the support programmes from the federal centre but suffered from the restrictions imposed in the republic.

“The second is sole proprietors who do not have hired employees, who carry out activities related to creativity, sports, the work of theatres, cinemas, zoos, sanatoriums, baths, hotels, exhibitions, catering," Salikhov added.

The recipient of the loan can use it for any business purposes. We are ready to provide from 300,000 to 1 million rubles — provided that the entrepreneur retains at least 90% of the number of employees as of October 1, 2021. If the condition is not fulfilled— the contract will be reviewed and the loan will have to be paid at the key rate of the Central Bank established on the date of conclusion of the contract.

Non-financial support measures

Tatarstan authorities also help businesses with non-financial instruments. We are talking about support measures to expand sales markets. These are the creation of product cards, photographing products, setting up logistics and consulting on the specifics of working on marketplaces. Besides, Tatarstan is ready to help improve the skills of SME employees to work on online trading platforms.

“The shelf of stores has a limit on capacity, on the geography of implementation, and marketplaces allow entrepreneurs and self-employed citizens to trade throughout Russia.

Salikhov reminded that Tatarstan entrepreneurs are ready to help with access to international marketplaces. There they can purchase an annual account. If the entrepreneur subsequently has international contracts, they are ready to assist them in product certification:

“Here we have a service — up to a million rubles we can pay for an entrepreneur for international certification on the terms of co-financing 80 to 20. That is, we pay 80%, 20% is paid by the entrepreneur," Salikhov said.

Besides, Tatarstan businessmen can take advantage of expert sessions on digital marketing. A total of 32 online lessons on digital marketing, marketing, targeted and contextual advertising are presented. As a result, the 50 best entrepreneurs are determined, whose accounts will be managed by professionals.

Service and educational support measures

Salikhov also drew attention to that in Tatarstan, service support measures have been launched for businessmen — three packages, from which one can choose. The first is accounting or tax reporting, preparation and submission of reports, as well as HR management.

The second package of service measures is personnel administration and salary calculation for six months. The third is the analysis of the state of the accounting base, the restoration of accounting for the previous period.

Besides, since November 6, an educational support measure is being launched in Tatarstan — scaling businesses through a franchise. Applications for participation are accepted until November 4.

Another educational project is “Enhancing a Business”. Here, applications from entrepreneurs are accepted until November 15. The training will be held from mid-November to December 10. Classes will be held online and offline, where experts will analyse business processes at enterprises and give recommendations on optimising activities.