The President has endorsed a comprehensive program to continually support small businesses in Uzbekistan, outlining the financial assistance framework for entrepreneurs. Effective January 1, 2024, the family business development initiative will offer loans extending up to 3 years with a 6-month grace period, featuring an interest rate 4% higher than the annual Central Bank rate.
For small businesses, preferential loans of up to UZS 1.5bn are designated. This includes unsecured loans, allowing for amounts up to UZS 100mn repayable over 84 months, with a grace period of up to 24 months. Revolver loans with a reduced collateral requirement, ranging up to UZS 150mn, are granted for a 36-month duration based on an open credit line with a repayment schedule every 12 months.
Furthermore, loans of up to UZS 1bn are extended for up to 84 months with a grace period of up to 24 months for acquiring fixed assets. Larger loans, up to UZS 1.5bn, are available for a similar duration and grace period, specifically designated for purchasing fixed assets.
Leasing options, capped at UZS 1.5bn for procuring equipment, technological tools, and specialized machinery for service provision, are facilitated over 84 months, with a grace period of up to 24 months.
An innovative feature includes interest-free installment plans for loans reaching up to UZS 1.5bn. These are earmarked for purchasing equipment, technological tools, and specialized machinery, with a repayment schedule spanning up to 24 months and a grace period of up to 84 months.
Moreover, small business entities aiming to expand their operations can access grant funds totaling up to UZS 2bn. These funds will be allocated to promising projects selected through established procedures, focusing on the commercialization of innovative developments and high-tech startup initiatives within the framework of state scientific programs.
The resolution specifies a gradual increase in the authorized capital of the Business Development Bank, scaling from UZS 1.86 trillion to UZS 3 trillion between October 1, 2023, and the end of 2024.
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