SMALL BUSINESS SUPPORT PROGRAM IN ST. PETERSBURGFund for Small Business Credit Assistance St. Petersburg 2012
Nonprofit organization «Fund for Small Business Credit Assistance»Founder: St. PetersburgAsset formation:• Budget of St. Petersburg• Federal budgetCharacteristics:• Date of foundation: October 29, 2007• Fund assets as of 11.04.2012 – 2.3 bln. RUB• Total limit of guarantees: 4 bln. RUB• Terms of operation: unlimited
Aims and objectivesAims:Development of credit granting system for small businesses inSt. PetersburgMajor types of activity:• Credit guarantees for SMEs• Microloans for SMEs
Partner banks (37)• North-West Bank of Sberbank of Russia (JSC) • Joint Stock Commercial Bank«Baltic• JSC «Promsvyazbank» Development Bank» (CJSC)• JSC «Baltinvestbank» • CJSC Commercial Bank «Miraf Bank»• Bank VTB 24 (CJSC) • Joint Stock Commercial Bank «Lanta Bank»• JSC «Bank St. Petersburg» (CJSC)• «Nomos bank» (CJSC) • JSC “Russ Bank»• JSC «Petersburg Social Commercial Bank» • JSC "АК BARS" Bank• CJSC «Globexbank» • JSC Bank “Otkritie”• JSC «Bank of Khanty-Mansiysk» • JSC “RosDorBank”• CJSC Commercial Bank «TETRAPOLIS» • JSC СКБ “Primsotsbank”• Joint Stock Commercial Bank «Rosbank» • JSC " Joint Stock Investment Commercial (JSC) Bank “Tatfondbank”• JSC «National Trade Bank» • JSC Commercial Bank “SEVERGAZBANK”• ООО «PromServiceBank» • JSC Bank “United capital”• Joint Stock Commercial Bank «Bank of • LLC Commercial Bank «Ogni Moskvy» Moscow» (JSC) • JSC Commercial Bank «Ellips bank»• Joint Stock Commercial Bank «Credit- • JSC «Nevsky bank» Moscow» (JSC) • АКБ «Investbank» (JSC)• JSC «Alpha Bank» • JSC «MDM bank»• Bank «Prime Finance» (JSC) • JSC «Metcombank»• JSC «Bank «АLEXANDROVSKY» • JSC «Energomashbank» • Bank «Vozrozhdenie» (JSC)
Procedure of credit granting under the Fund’s guarantee Small business entity applies to the Bank for a credit under the Fund’s guarantee Bank approves a credit and applies to the Fund for guarantee issuanceParties conclude a trilateral guarantee agreement and small business entity pays a fee to the Fund Bank grants credit under the Fund’s guarantee
Volume of guaranteesMaximum volume of Fund’s guarantee can not exceed 50% of the credit sum and credit interest for 3 months Volume of guarantees per one borrower no more than: - 20 mln. RUB for small manufacturing, science and technology, and innovative businesses; - 15 mln. RUB for all other types of activities.
Guarantees: granting conditions• Registration on the territory of St. Petersburg• Issuance – on credit agreements concluded for a period of at least 3 months• At least 3 months of business activity• No breaches of previously concluded credit agreements 6 months prior to the Funds guarantee application• No bankruptcy proceedings 2 years prior to the Fund’s guarantee application• Credit guarantee provided in the amount of: – No less than 30% - for science and technology, innovative, manufacturing, construction, transp ort and service enterprises – No less than 50% - for other types of small businesses
Advantages of working with the Fund• Possibility to receive a credit while lacking sufficient liquid collateral• Simplified guarantee granting procedure – 3-day application review period• Fund’s guarantee has been granted the status of the II quality class of cover funds by the Bank of Russia• Compliance of the Fund’s guarantee granting criteria with the banks’ credit granting criteria• No need to collect documents to receive the Fund’s guarantee• Guarantee granting decisions are made quickly• Fee rate for the Fund’s guarantee is significantly lower than bank guarantee - 1.75% per annum (of the volume of guarantee)
Results of a credit guarantee program as of 11.04.2012 Since the beginning of operations 1,51З bank applications for guarantee havebeen received. The Fund turned down 72 applications due to borrower’snoncompliance with guarantee eligibility requirements. 77 applications have not beenprocessed on the bank’s or borrower’s initiative. Number of concluded guarantee agreements• In 2012 – 148• Since the beginning of operations – 1,363 Volume of granted guarantees• In 2012 – more than 514 mln. RUB• Since the beginning of operations – 4,462 mln. RUB The Fund has fulfilled its obligations to the Banks for 38 borrowers and paid 100.8 mln. RUB on concluded guarantee agreements.
Microfinancing program Second type of services provided by the Fund:Microloans granted under simplified review procedure to the amount of up to 1,000,000 RUB at 10% interest per annum for a 12-month period
Microfinancing program• Loan amount: 50,000 – 1,000,000 RUB• Maturity: 3 to 12 months• Interest rate: 10 % per annum• Loans are repaid in equal monthly installments with interest accrued on actual debt outstanding• Means of loan guarantee: Loans up to 100 thousand – guarantee Loans over 100 thousand – guarantee and collateral
Conditions of microloan granting• Registration on the territory of St. Petersburg• Small business status• At least 3 months of business activity• Positive financial result• No pending tax liabilities and loan delinquencies
Results of a microfinancing program as of 11.04.2012 Since the beginning of the program 2,626 requestsand 346 applications have been received. Number of loans provided• In 2012 – 38• Since the beginning of the program - 210 Volume of loans provided• In 2012 – 20,629.00 thousand RUB• Since the beginning of the program – 100,044.00 thousand RUB