Moscow Authorities to Support Local Businesses with Additional 500mn rubles

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According to Alexei Fursin, head of the Moscow Department of Entrepreneurship and Innovative Development, the Moscow authorities would provide 500 million rubles for further support for small and medium-sized firms through cost redistribution.

“We are boosting the volume of assistance for human-intensive enterprises on behalf of Mayor Sergei Sobyanin. The service industry, catering, sports, education, and recreation – in the amount of roughly 500 million within the department’s existing financing,” Fursin stated at a Moscow City Duma Commission on Entrepreneurship, Innovative Development, and Information Technologies meeting.

He highlighted that the realignment of budget spending will give support to businesses, Izvestia reports.

On October 25, Russian Prime Minister Mikhail Mishustin declared that the Russian government had planned an initiative to reimburse small enterprises and non-governmental organizations (NGOs) that had been impacted by the outbreak. As a result, a small firm will get a grant for each employee in the amount of one minimum wage (minimum wage).

On the same day, Kremlin spokesperson Dmitry Peskov said that Russia has adopted a list of assistance measures aimed at both families with children and companies in response to the coronavirus. The government of the nation is in charge of the issue.

The Moscow administration authorized a concessionary loan package for major firms on October 25. It can be employed by businesses in the industries that are most affected by the coronavirus’ spread.

Companies will be subsidized by 4% of the loan’s yearly interest rate under the scheme. Its annual growth rate will not surpass 6% for entrepreneurs. The subsidy will last for 12 months, with a maximum loan amount of 500 million rubles.