The Program is designed to fund the regional priority projects of small and medium enterprises, as well as to enable them to apply for subsidies and/or credit guarantees within the "Business Roadmap 2020" Program, approved by the Decree № 301 of the Government of Kazakhstan, from April 13, 2010 (hereinafter – BR-2020 Program).
The basis for the development of the Program:
- Address of the President of the Republic of Kazakhstan Nursultan Nazarbayev to the people of Kazakhstan from January 28, 2011 - "Building the Future Together";
- The development strategy of "Entrepreneurship Development Fund" Damu" JSC for 2011-2020.
Purpose of the Program – to promote the development of small and medium enterprises in priority sectors of economy in regions of Kazakhstan.
The program is implemented by the Fund “Damu” placing the funds at the Partner Banks under certain (targeted and restrictive) conditions for further lending to Final borrowers.
Around 15.0 bln. tenge was allocated in order to implement the Program.
Following banks are involved in the implementation of the Program.
- "Eurasian Bank" JSC;
- "Delta Bank" JSC;
- Subsidiary Bank "VTB Bank (Kazakhstan)" JSC;
- "Nurbank" JSC;
- "Kazinvestbank" JSC;
- "Tsesna Bank" JSC;
- "Bank Center Credit" JSC.
Key terms on providing lending to Final borrowers by a Partner Bank:
- Targeted segment - small and medium enterprises (SME), which are established in accordance with the laws of the Republic of Kazakhstan;
- Loan currency – tenge;
- The maximum limit for a single Final borrower - 500,000,000 (five hundred million) tenge;
- Loan term - not more than 84 (eighty-four) months;
- The nominal interest rate on the loan - not more than 14.0% (fourteen percent) annually;
- Purpose of the loan – replenishment of working capital, acquisition of new fixed assets and their modernization;
- Funding industry - Sectors of the economy in accordance with the general classification of economic activities, approved by the Decree № 683 of the Chairman of the Committee for Technical Regulation and methodology of the Ministry of Industry and Trade of the Republic of Kazakhstan, on December 14, 2007, according to the Provision №1 of BR-2020 Program;
- The period of credit line availability- up to one (1) year;
- Mandatory requirements –the Final borrowers that have received funding under the Program are eligible to apply for the BR-2020 Program for subsidies and/or guarantees;
- Other terms and conditions are determined independently by STBs.
- The following is prohibited under the Program when providing loans to Final borrowers:
- To participate in the charter capital of legal entities;
- To cover losses of business activities of the Final borrowers;
- Payment of agent services;
- Refinancing of loans of the Final borrowers.