This month, SME Bank (part of VEB.RF group), started issuing interest-free loans to SMEs to pay their employees’ salaries as a part of government support measures for businesses affected by the spread of coronavirus COVID-19.
The new loan product for SMEs is aimed at urgent needs to support and preserve employment, in particular to pay salaries on a monthly basis within six months of the loan. The loan is calculated on the basis of the minimum wage (individual for each region) and the number of employees. The loan term is 6 months with repayment of all debts at the end of the term, the rate is 0% per annum.
For current customers of the Bank, interest-free loans will be issued under the most simplified procedure. The interest rate on the loans is subsidized by the Ministry of Economic Development of the Russian Federation, the loans are refinanced by the Central Bank, VEB.RF provides collateral in the form of a guarantee.
“In the current conditions it is very important to support small entrepreneurs and the labor groups behind them. Development organizations have the necessary tools to respond flexibly to the needs of the real economy and give business the shoulder in this situation,” VEB.RF Chairman Igor Shuvalov said.
“One of the most vulnerable sectors of the Russian economy due to the coronavirus pandemic is small and medium business. SME Bank is a niche bank whose main mission is to support this segment. And we will do our best to help SMEs at this difficult time. For every entrepreneur who comes to our bank, we will offer an effective solution in an individual format,” added Dmitry Golovanov, Chairman of the Board of SME Bank.