OREANDA-NEWS. August 06, 2012. Sviaz-Bank and SME Bank have entered into an agreement on a long-term loan of 2.2 billion rubles to be made to Sviaz-Bank to provide funds to small and medium-size businesses undertaking modernization, innovation, and energy-efficient projects. The agreement will remain in effect for five years from its signing date, reported the press-centre of Sviaz-Bank. 

The agreement will enable Sviaz-Bank, one of Vnesheconombank’s subsidiaries, to have a part in implementing the state program of support for small and medium-size businesses by providing funds to companies developing and introducing innovations or implementing projects to modernize production processes on the basis of modern technologies that help save energy and improve energy efficiency.

Providing reasonable funds for projects, developing the noncommercial segment of small and medium-size business, and supporting socially significant projects are Sviaz-Bank’s top priorities in supporting small and medium-size businesses.

A loan can be made for a period of at least one year to five years, at most. Its size depends on the borrower’s accounting practice. Self-employed entrepreneurs and corporate businesses* following simple accounting rules are eligible for loans of up to 30 million rubles, and businesses using standard accounting procedures can take out loans of up to 60 billion rubles, in both cases, though, up to 75% of the borrower’s balance value on the latest reporting date. Loans will be issued at an interest rate of 12.5% per annum in rubles.

A borrower is free to take out a loan and collect the funds in a lump sum, or have a nonrevolving credit line opened and draw down the funds at his convenience.

A loan may be issued against a security such as any liquid assets, except for goods in process, or, optionally, against a security equal to 75% of the loan liabilities.

“In our time, projects designed to lower energy costs are eagerly supported by the government and are given first priority by small and medium-size businesses that cannot get along without the banks’ financial backing. In cooperation with the SME Bank, Sviaz-Bank has rolled out a new target loan for entrepreneurs to use the borrowed funds to purchase energy-saving and innovation-driven technologies, and to modernize their production facilities. We expect the product to be high in demand and the share of such loans in the Bank’s total corporate portfolio of loans to rise significantly,” said Sergey Volokhov, Vice Chairman of Sviaz-Bank’s Management Board.

In the view of Olesia Teploukhova, member and Vice Chair of the SME Bank’s Management Board, the agreement will be a big stride forward in the Bank’s priority area – support for projects in innovations, modernization, and energy efficiency. “We see our task to be helping the still ‘understrength’ segments of the economy that are falling behind in development,” said Olesia Teploukhova. “Large-scale modernization of manufacturing capacities and introduction of new manufacturing technologies are the key objectives of the program of financial support for small and medium-size businesses. This year, the share of loans made by the SME Bank for these purposes has topped 52% of the total, and we hope to raise it still further with the help of our partner banks.”

*Leasing companies and companies in the construction business are neither small nor medium-size businesses (according to the classification given in Federal Law No.209-FZ, Development of Small and Medium-Size Business in the Russian Federation, July 24, 2007).