Umbrella surety will boost small business funding

Three banks joined the SME Corporation umbrella surety program Alfa-Bank, Sovcombank and Ak Bars Bank as part of the second stage of the selection of banks participating in the program. This is stated in the message of the Corporation.

The limit of guarantees of the SME Corporation at the new stage will amount to 8 billion rubles, which will be directed to new participants in the program, as well as to Otkritie Bank and Sberbank to increase the amount of support for entrepreneurs. The increase in the total volume of guarantee coverage of the umbrella mechanism from 8 to 16 billion rubles will allow providing loans to small and medium-sized enterprises in the amount of up to 32 billion rubles.

Since September 2021, loans under the umbrella mechanism have been issued by six banks: VTB Bank, Otkritie Bank, SME Bank, Promsvyazbank, RNKB Bank, Sberbank. For two months, banks have issued more than 7 billion rubles under the program.

“On behalf of the President, we launched a pilot using a new mechanism – an“ umbrella ”surety. It helps protect entrepreneurs from high interest rates and expand the number of small and micro-businesses that can lend. What is important – we see a decrease in the interest rate for business, now it is 9.9%. It has become much faster to receive guarantee support from the state, since a loan and a guarantee can be obtained in the “one window” of a partner bank. The product is available to entrepreneurs throughout the country, including Crimea and Sevastopol, “said Alexander Isaevich, CEO of the SME Corporation.

The umbrella guarantee mechanism is a simplified way to get a loan if an entrepreneur does not have enough collateral for obtaining funding. In fact, this is a guarantee of the SME Corporation to the bank that the entrepreneur's obligations under the loan will be fulfilled. The main parameters of the Corporation guarantee: the guarantee covers up to 50 percent of the loan amount; the size of the guarantee for a loan (or several loans) of one entrepreneur – up to 1 billion rubles; loan term no more than 180 months; the guarantee for entrepreneurs is free, the bank pays the commission. Detailed information on the umbrella surety mechanism is available on the website of the SME Corporation.