Subprogram "State Support of Small and Medium Entrepreneurship"

Contractor:
Entrepreneurship Development and Support Division of the Directorate of Economics of the Department of Finance, Economy and Property Relations of Chukotka Autonomous Region
Address: 2 Otke street, Anadyr, Chukotka Autonomous Region, 689000
Telephone: (42722) 6-93-36
Fax: (42722) 2-93-04, 2-93-18

Head of the Division:
Alena Nikolaevna Pinyaeva
E-mail: A.Pinyaeva@depfin.chukotka-gov.ru

Advisor of the Division:
Aleksandr Germanovich Lazutin
E-mail: df_eco2805@depfin.chukotka-gov.ru

The activities for state support of small and medium entrepreneurship implemented in 2017
under Subprogram "State support of small and medium entrepreneurship" of the State program "Promoting the economic activity of population of Chukotka Autonomous Region 2014–2019"

item No. Activity Name of the Program (Subprogram) Short Name of the Program (Subprogram) Activity Provided by Subprogram for 2017 Financed as of 1 March 2017 Balance of funds as of 1 March 2017
Total including:   Total including: Total including:
Federal budget funds Regional budget funds Federal budget funds Regional budget funds Federal budget funds Regional budget funds
1. Improving the regulatory and legal framework for development and support of small and medium entrepreneurship Implemented within the budget commitments made for operation of the Department of Finance, Economy and Property Relations of Chukotka Autonomous Region
2. Financial support of SME entities 28000,0 0 28000,0 28000,0 0,0 28000,0
2.1. Providing state support to emergent SME entities to create their business Grants for emergent entrepreneurs/Grants 5000,0 0 5000,0 5000,0 0,0 5000,0
2.2. Subsidizing part of the expenses of SME entities related to making the first (advance) payment when signing the equipment lease contract(s) Leasing 3000,0 0 3000,0 3000,0 0,0 3000,0
2.3. Subsidizing part of the expenses of SME entities related to procurement of equipment for establishment and (or) development, and (or) upgrading of production of goods (work, services) Equipment 20000,0 0 20000,0 20000,0 0,0 20000,0
3. Establishment and development of infrastructure for support of SME entities 50000,0 0 50000,0 50000,0 0,0 50000,0
3.1. Establishment of a regional guarantee fund Guarantee fund 50000,0 0 50000,0 50000,0 0,0 50000,0
4. Information support of SME entities 100,0 0 100,0 100,0 0,0 100,0
4.1. Preparation and release of information materials on development of small and medium entrepreneurship Release of information materials 100,0 0 100,0 100,0 0,0 100,0
  Total   78100,0 0 78100,0 78100,0 0,0 78100,0

Within the framework of improving the regulatory and legal framework for development and support of small and medium entrepreneurship in the region, the tax incentives for SME entities have been developed.

Activities for financial support of SME entities in 2017:

• providing state support to emergent SME entities to create their business (Grants)

Subsidy is granted to emergent small entrepreneurship entities registered with the tax authority for less than one year at the time of application for implementation of their business plan in one of the priority directions, subject to co-financing of at least 15% of the received subsidy amount. The maximum amount of subsidy per one support recipient is RUB 500,000. 
Details...

• Subsidizing part of the expenses of SME entities related to procurement of equipment for establishment and (or) development, and (or) upgrading of production of goods (work, services) (Equipment)

Subsidy is granted as a lump-sum payment in the amount of up to 50% (inclusive) of the documented expenses of an SME entity related to procurement of equipment, which purchase was made no earlier than 1 January 2015, in order to create and (or) develop and (or) upgrade production of goods (rendering services), but no more than RUB 5.0 million per one support recipient 
Details...

• Subsidizing part of the expenses of SME entities related to making the first (advance) payment when signing the equipment lease contract(s) (Leasing)

Subsidy is granted in the amount of maximum 90% of the expenses of an SME entity for making the first payment (advance payment, net of VAT), when signing the equipment lease contract(s) effective in 2017 and concluded no later than 3 years ago, but no more than RUB 5.0 million per one support recipient 
Details...

Establishment and development of infrastructure for support of SME entitie

1. Establishment of the first industrial park in Chukotka continues in 2017. This year the Management Company will be established for the industrial park and the first agreements will be signed with the park residents.

The industrial park is a complex of real estate items managed by a single operator (specialized management company) consisting of a land plot with production, administrative, storage and other premises and facilities equipped with energy carriers, engineering and transport infrastructure and administrative and legal conditions for allocation of production facilities.

Final works of the first construction stage of the park are being carried out at the moment: the energy infrastructure of the industrial park (gas boiler house) is being commissioned. The target is to reduce the heat cost for the park residents by establishing a small gas-fired energy center, as well as free production of CO2 (carbon dioxide) required for greenhouse facilities.

The existing real estate items will be available for rental on the park territory for allocation of production facilities with the area of more than 7,000 sq. m. It will be also possible to build the premises for future production.

The main parameters of the industrial park are:

  • location: 41 Ryltutegin street, Anadyr, Chukotka Autonomous Region;
  • land plot area: 13.6 Ha;
  • area of premises: the area of existing premises located on the park territory amounts to 7,273 sq. m, the area of premises under design — 15,240 sq. m;
  • distance from main infrastructure facilities:
  • main gas pipeline — 0.2 km;
  • power station — 1 km;
  • available area for residents: land (for construction) — 8 Ha, existing premises — 7,273 sq. m;

Possible specialization of residents: vegetable growing, food industry, production of construction materials and other types of production with the hazard class of V category.

2. Establishment of  the first guarantee fund in Chukotka

The main objective of guarantee funds is to assist SME entities in obtaining the necessary financing by providing guarantees for loan agreements, lease contracts, and bank guarantee agreements.

Guarantees of the Fund will secure fulfillment of obligations by the Borrower within 70% of the loan requirements of the bank to the borrower. The maximum amount of guarantees per one borrower will not exceed RUB 5 million. The Borrower's payment for the guarantee of the Fund is determined on an annual basis.

To receive the guarantee of the Fund, the Borrower shall apply for loan to the partner bank by himself. Partner banks will be determined on the tender basis.