OREANDA-NEWS. June 03, 2010. OAO AIKB Tatfondbank announced of launching its new SME lending programme, ‘Financing for Innovations and Modernisation’, implemented together with OAO Russian Bank for Development. The loans under the programme are issued for the term of 5 to 7 years in the amount of up to RUR 150 million at a significantly lower rate, reported the press-centre of Tatfondbank.     

The government support within the programme can be granted to innovations- and modernisation-related projects of small- and medium-sized enterprises engaged in the manufacturing sector of the economy and in the field of modern technologies.

According to the programme requirements, the borrower’s activity should be aimed at using the results of scientific research and developments to expand and renew the range and improve the quality of their products (commodities, services) and to update the production technology for its further introduction to the manufacturing process.

Special priority is given to projects ensuring the manufacture of competitive products that have no Russian equivalents and creating new jobs.

To obtain loans for innovative projects, the applicants should have a patent, inventor’s certificate, and an expert report confirming the innovative nature of the invention.

The modernisation-related projects include such connected to further upgrading, improvement, renovation of the machines, equipment, technical processes, their bringing in conformity with new requirements and quality indicators. The purpose of such project should be the material enhancement of labour productivity, energy efficiency, cost effectiveness, ecological soundness or safety of the upgraded production.

The pledge collateral required to obtain the loan includes liquid assets and real estate. Besides, the borrower’s own funds should comprise at least 15% of the project cost.

‘This government programme provides cheap and long money that small- and medium-sized businesses need so much. The practice shows that the payback-period for projects related to equipment modernisation and even more so to innovations is 5-7 years. The programme has just been launched, but we are already conducting negotiations with a number of eligible companies’, said Elza Farrukhshina, Head of Department for Support of Credit Operations of OAO AIKB Tatfondbank, commenting on the event.