The Business Development Bank (BDB) of Uzbekistan has launched the "Continuous Small Business Support Program." With grants of up to UZS 2bn ($161,855) for innovative startups, this initiative aims to provide crucial financial, advisory, and educational assistance to small enterprises, lex.uz informs.
Program Implementation Procedure
On January 20, the Cabinet of Ministers formally approved the implementation procedure for the program, emphasizing its threefold approach to aiding small enterprises—financial, advisory, and educational. The BDB will play a pivotal role in overseeing and executing the program.
Application and Scoring Process
Participation in the program commences with candidates submitting applications through a designated business portal. Within two working days, candidates undergo scoring based on data from government agencies and commercial banks. Subsequently, candidates meet with the assistant to the hokim for a detailed application assessment.
Preliminary Evaluation and Expert Groups
Following the assessment, candidates are included in the preliminary list. Expert groups at Small Business Support Centers evaluate proposed projects based on activity duration, turnover, and employee count. Candidates are then directed to educational programs.
Educational Support
The training phase involves collaboration with various institutions, including business schools, entrepreneurship institutions, innovation development agencies, universities, monocenters "Ishga Marhamat," vocational training centers, industrial enterprises, and clusters. This comprehensive training aims to equip candidates with the necessary skills and knowledge.
Upon completing training and exams, candidates receive certificates, enabling them to apply for support through the business portal.
Financial Support Mechanisms
The program provides a range of financial support mechanisms, including loans, interest-free loans, grants, and leasing. Financial support objectives, amounts, eligible recipients, and additional terms are clearly defined, promoting transparency and inclusivity.
Types of Financial Support
Organization of Production: Up to UZS 100mn for all participants, with no collateral required and a 7-year grace period.
Revolving Loan for Working Capital Replenishment: Up to UZS 150mn ($8,092) for SMEs with a minimum of 3 employees, featuring reduced collateral requirements by 50% and repayment every 12 months.
Purchase of Fixed Assets to Expand Production: Ranges from up to UZS 1bn ($80,927) to UZS 1.5bn ($121,391), depending on annual turnover and employee count, with a grace period of 2 years.
Purchase of Equipment and Tools on Lease: Up to UZS 1.5bn ($121,391) with a 2-year grace period.
Equity Participation: Up to UZS 1bn ($80,927) for the acquisition of state property, land, buildings, and equipment.
Grant Allocation: Up to UZS 2bn ($161,855) for innovative and high-tech start-ups with a minimum of 3 employees.
Application Processing Times
Grant applications are processed within 15 business days, while loans and leasing take 5 business days. The cumulative assistance from all types cannot exceed UZS 2bn ($161,855).
Candidates also benefit from advisory support, receiving information and advice on licensing, tax and customs administration, export-import operations, contract documentation, government procurement, and real estate transactions.
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