MEDIUM AND SMALL ENTERPRISE DEVELOPMENT FUND MUST NOT EXCEED VND 30 BILLION PER PROJECT
This is the directive of the Government at the Decision No.601/QD-TTg dated April 17, 2013 on establishing medium and small enterprise development fund.
At this Decision, The Prime Minister regulates to establish the Medium and Small Enterprise Development Fund (hereinafter called Fund) to support medium and small enterprises that have feasible business plans encouraged by the State with the total amount of VND 2,000 billion and conformable with the purposes of the Fund in order to improve the competitiveness of enterprise and contribute to the increase of incomes and employment creation.
Accordingly, the Prime Minister regulates the loan’s level, loan’s term and loan’s rate. The maximum loan given to each business plan is 70% of its total investment (not including working capital), and shall not exceed 30 billion VND. The loan term depends on the ability to recoup capital, the solvency of the debtor, and the specific conditions of each business plan, but shall not exceed 07 years. In special cases in which long-term projects demand longer period, the Minister of Planning and Investment shall decide the loan period, but such period shall not exceed 10 years.
The Fund shall give loans to medium and small enterprises must have the business plans belong to the List of prioritized sectors of the Fund; owners of such medium and small enterprises are capable of civil acts; the equity capital for the business plan reaches at least 20%, and the capital is adequate to execute such business plans; the debt is likely to be paid before the deadline in the signed credit contract; the regulations on loan guarantee are complied with; the medium and small enterprises that have taken loans from the Fund for their business plans shall not take preferential loans from other credit institutions of the State.
This Decision takes effect on the signing date
