MINSK, 13 October (BelTA) – The Development Bank of the Republic of Belarus has announced its first-ever competition for investment projects of small and medium-sized businesses with a focus on the regions, the bank’s press service told BelTA.
“The financial institution continues to implement new support tools, based on the real needs of the government and businesses. For the first time in its history, the Development Bank will conduct a competitive selection of investment projects of small and medium-sized businesses. This is a new financial support mechanism that is doubly attractive for businesses,” the press service noted.
The program provides financing at a rate pegged to the National Bank’s refinancing rate (currently 9.75%). A key benefit is the reimbursement of up to 35% of a project’s capital expenditures (excluding VAT) from the national budget.
Applications will be accepted until 17 November. Following a competitive selection process, winners will be eligible for a loan of the Development Bank. Furthermore, as the project advances, businesses may apply for the cost reimbursement, which can be used to repay the Development Bank loan.
The first competitive selection process is being conducted for investment projects implemented in Beshenkovichi District, Braslav District, Gorodok District, Dubrovno District, Rossony District, Senno District, Shumilino District, Vetka District, Yelsk District, Zhlobin District, Loyev District, Mozyr District, Narovlya District, Vileika District, Volozhin District, Dzerzhinsk District, Logoisk District, Lyuban District, Soligorsk District, Uzda District, Cherven District, Klimovichi District, Klichev District, Krasnopolye District, Slavgorod District, Chausy District, and Cherikov District.
The financing terms are as follows: the loan amount ranges from Br1 million to Br20 million per project, covering between 30% and 80% of the project’s capital expenditures (VAT inclusive). The maximum loan term is 15 years, with a grace period for principal repayment of up to one year after the facility is commissioned.
“The Development Bank will provide comprehensive advisory and hands-on support to project initiators to ensure the most effective outcomes,” the press service explained.
The terms and requirements of the competition are available in the SME Support section of the Development Bank’s website.
The press service also highlighted that the Development Bank’s ecosystem for small and medium-sized businesses has been significantly enhanced over the course of the year. Key upgrades include a wider range of loan products, a substantial increase in funding available through the Financial Support Fund, and the introduction of online resource access.
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