President Shavkat Mirziyoyev of Uzbekistan has approved a new package of measures aimed at providing financial and institutional support to entrepreneurs. The presidential decree, published on Lex.uz on September 14, outlines a comprehensive program of continuous support for small businesses set to launch on October 1. The Business Development Bank (formerly Qishloq Qurilish Bank) will oversee and enhance the program's implementation.
The program has ambitious funding goals, with plans to allocate UZS 6 trillion (approximately $493mn at the Central Bank exchange rate) from the state budget by the end of 2026. Additionally, $1.2bn (approximately UZS 14.6 trillion) will be sourced from international financial institutions.
The program is open to various participants, including individual entrepreneurs, self-employed individuals, homeworkers, artisans, dekhkan farms, and small enterprises with at least three permanent employees, provided they have been in operation for at least one year. Individuals and legal entities with successful family business projects and a positive credit history are also eligible.
Under the program, participants can access loans of up to UZS 1.5bn (over $123,000) on preferential terms. These loans can be used for purposes such as establishing or expanding a business, replenishing working capital, or leasing fixed assets. The interest rate will not exceed the main Central Bank rate by more than 4%.
For loans of up to UZS 100mn (over $8200), no collateral will be required. Loans up to UZS 150mn (over $12,000) will see the collateral requirement reduced by 50%. Small businesses will also have the opportunity to include a share in their authorized capital in the form of state property, land, buildings, equipment, and other assets, with a maximum value of UZS 1bn (over $82,000) and a share size of up to 20%. To qualify for this option, a company must have operated for at least two years and employed a minimum of ten people. Small business assistance centers will have the authority to sell these contributed shares to initiators or other investors at market value over a seven-year period.
Program participants will also receive guidance on various business-related matters, including obtaining licenses, permits, certificates, customs and tax administration, registration of import-export transactions, participation in government procurement, and the purchase and lease of land, buildings, and structures. Additionally, they will be informed about benefits, preferences, and other measures to support businesses.
This initiative underscores Uzbekistan's commitment to fostering entrepreneurship and providing essential support to small businesses to drive economic growth and development in the country.
Earlier Daryo reported the 2023 UNCTAD World Investment Report highlights an increase in the yearly investment deficit for developing nations, surging from $2.5 trillion in 2015 to an alarming $4 trillion annually.
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