On 10 May 2019, the Government issued Decree No. 39/2019/ND-CP on organization and operation of small and medium enterprise development funds. The Decree takes effect on July 1, 2019.
Accordingly, the Fund will lend small and medium enterprises directly when meeting the following 04 conditions:
– Meet the provisions of Article 4 of the Law on Support for Small and Medium Enterprises;
– Having feasible production and business projects and plans, exploiting all kinds of intellectual properties or new technologies or new business models according to specialized law provisions;
– Ensure equity capital to participate in projects, production and business plans at least 20% of the total investment capital to implement projects and production and business plans and ensure sufficient capital for realization. show;
– Meet the provisions on loan security in accordance with this Decree.
Enterprises can borrow for each production and business project or plan not exceeding 80% of the total investment capital of each project or plan.
The direct lending interest rate for enterprises is equal to 80% of the lowest rate of commercial lending rates.
It can be seen that the capital for business development is an important and difficult problem for many enterprises, especially for small and medium enterprises, so the promulgation of policies to support loans as above is a very positive policy for promoting economic development.