Small and medium-sized enterprises (SMEs) with insufficient collateral will be able to attract 3 trillion rubles in bank financing by 2025 through the national guarantee system (NGS) and a new "umbrella guarantee mechanism", according to the press service of the SME Corporation, which is preparing to launch the umbrella guarantee mechanism this year. It will allow businessmen to seamlessly obtain loans guaranteed by the corporation.

Also, this type of support will halve the terms of loans in banks, eliminate the need to provide duplicate documents and undergo unnecessary procedures.

"By 2025 SME companies will attract 3 trillion rubles of bank financing under the national guarantee system, largely due to the new "umbrella guarantee mechanism". First of all, this support measure is relevant for entrepreneurs who do not have the necessary collateral to obtain a loan", - said Alexander Isayevich, CEO of SME Corporation.

At the same time the new mechanism makes financing more accessible and significantly optimizes the process of obtaining a loan, relieving entrepreneurs from submitting documents to both the bank and the corporation.

"Embedding guarantee support into the process of granting a loan provides seamless and speedy procedure for business ... This principle will also contribute to the national objective to increase employment in small and medium-sized businesses," concluded the head of the organization.

As of today, an entrepreneur who lacks collateral for a loan must first apply to a partner bank of an NHS participant (SME Corporation, SME Bank, RGO) to form a package of documents and submit them to the NHS participant for a decision. The bank then provides financing with the guarantee support of the NGS participant. All these processes may take several months. The new mechanism will simplify the procedure and reduce its time.

The press service pointed out that the launch of the new "umbrella guarantee" mechanism will make it possible to provide loans worth 600 billion rubles to small and medium-sized businesses by 2024. The consolidated volume of financial support under the NGS up to 2024 will exceed 2.3 trillion rubles, and by 2025 it will amount to about 3 trillion rubles in loans to SMEs that do not have sufficient collateral.

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Author: Ksenia Gustova