Tatarstan allocates 9 billion rubles to support businesses

More funds will be allocated to support businesses

Tatarstan is experiencing positive dynamics in the development of small and medium-sized businesses, First Deputy Minister of Economy of the Republic of Tatarstan Natalia Kondratova said at a briefing on SMEs support on 14 November. In total, the share of entrepreneurs employed in this sector is 40% of the total number of people employed in the republic:

• by the end of October 2024, the number of self-employed reached 352,700 people;

• number of SMEs has increased by 4% to 177,000 people;

• there is an increase in the number of medium-sized enterprises (+7.4%) and small enterprises (+4%).

As part of the Small and Medium-sized Enterprises national project, about 7.7 billion rubles were allocated for 2024. At the initiative of the Tatarstan leadership, these funds will be saved and supplemented by the capitalisation of republican institutions — as a result, the amount of support is expected to increase to 9 billion.

More than 3,000 self-employed people (special programs), more than 3,500 start-up entrepreneurs (during the first two years of work) and 1,200 active entrepreneurs, including exporters, have already received support this year.

Within the framework of Federal Law 223, large customers of Tatarstan carried out more than 60% of purchases from SMEs (worth more than 55 billion rubles). More than 4,000 Tatarstan entrepreneurs have sold products worth more than 136 billion rubles through the republican marketing centre. Tatarstan tariff organisations and customers are also actively working (more than 18,000 purchases from SMEs).

Preferential loans, guarantees and leasing

To assist entrepreneurs, a system of development institutions has been established in the republic, including the Entrepreneurship Support Fund of the Republic of Tatarstan, Guarantee Fund of the Republic of Tatarstan, Regional Leasing Company of the Republic of Tatarstan, and Centre for Cluster Development and Project Management of the Republic of Tatarstan. They all provide different support measures:

• Preferential microloans: the Tatarstan Entrepreneurship Support Fund offers financial assistance to SMEs in the form of microloans at preferential rates from 1% per annum. The fund also provides larger loans secured by intellectual property. Since this year, the fund has also launched two new products that comply with Sharia law, which are included in the register of the Central Bank.

• Guarantees: the Guarantee Fund of Tatarstan provides guarantees for companies that cannot provide sufficient collateral to obtain a loan from a bank. Key conditions: the maximum guarantee amount is 70 million rubles, maximum security is 70% of loan amount, the company's commission fee ranges from 0.5% to 1% of the loan amount.

• A guarantee can also be obtained under another program of the Daman Foundation — partner financing, for which 23 guarantees have already been issued. In addition, the fund issues guarantees for 95% of borrowed funds to companies that have intangible assets but cannot get a loan from a bank.

• Leasing: Tatarstan Regional Leasing Company offers two main leasing products. One of them, Sustainable Development, provides for leasing of domestic equipment, commercial vehicles and special equipment at a rate from 9.5% to 15.5% per annum. Financing is available only for SMEs engaged in processing and providing services (trade is not financed). The second product is the leasing of industrial real estate on the territory of the industrial park. The amount is up to 20 million rubles, the rate is 8% per annum. A leasing product called Ijara based on Islamic financing is also available, allowing the purchase of vehicles and special equipment from Russia for up to 5 years. The security payment is from 10% of the value of the leased asset, but not less than the lessor's costs associated with the acquisition of property.