Loans to support small and medium enterprises not exceeding 30 billion VND/project
(Baonghean) -This is the direction of the Prime Minister in Decision No. 601/QD-TTg dated April 17, 2013 on the establishment of the Small and Medium Enterprise Development Fund. In this Decision, the Prime Minister stipulates the establishment of the Small and Medium Enterprise Development Fund (hereinafter referred to as the Fund) with a charter capital provided by the State budget of VND 2,000 billion to support small and medium enterprises with feasible projects and production and business plans in priority areas, improving the competitiveness of enterprises, contributing to creating jobs for workers.
Accordingly, the Prime Minister also stipulates that the maximum loan amount for each project and production and business plan is equal to 70% of the total investment capital of each project and plan, but not exceeding 30 billion VND. The loan term is determined in accordance with the capital recovery capacity, the borrower's ability to repay the debt and the specific conditions of each project, but not exceeding 7 years; in special cases, it is decided by the Minister of Planning and Investment, but not exceeding 10 years, with an interest rate not exceeding 90% of the commercial loan interest rate and applied uniformly nationwide.
Small and medium enterprises wishing to borrow capital from the Fund must meet the following conditions: Have a feasible project, production and business plan in the List of priority areas supported by the Fund; ensure that the owner's equity participating in the project is at least 20%; have sufficient ability to repay the debt within the time limit specified in the contract and must provide loan guarantees in accordance with current laws. Enterprises that are supported to borrow capital from the Fund are not supported with preferential loans from other State credit institutions...
This Decision comes into force from the date of signing.
NT (Synthesis)
