Supporting interest rate of 2%/year of the state budget with business loans

1. New circular in favor of innovative small and medium-sized enterprises

The Ministry of Planning and Investment has just issued Circular No. 06/2022/TT-BKHDT guiding a number of articles of Government Decree No. 80/2021/ND-CP detailing and guiding the implementation of a number of articles of the law. on support for small and medium-sized enterprises (SMEs).

According to this circular, support activities include: advice; human resources development; support innovative start-up SMEs; helping SMEs to join industrial clusters and value chains; content of the management of support activities for SMEs.

The targets of the support activities are companies incorporated, organized and operating in accordance with the law on companies and meeting the provisions of Chapter II of Decree No. 80/2021/ND-CP on the criteria for the identification of SMEs.

The circular clearly indicates that agencies and organizations supporting SMEs prioritize the allocation of funds to support women-owned SMEs, SMEs employing many women, SMEs being social enterprises; In accordance with the provisions of Article 5 of Decree No. 80/2021/ND-CP to select the criteria for determining the size of micro-enterprises, small enterprises and medium-sized enterprises, ensuring that enterprises benefit from best from an advantageous level of support.

Regarding support for innovative start-ups, the Circular clearly states that innovative start-up SMEs are supported according to the content and level of support specified in Article 22 of Decree No. 80/2021/ND-CP. Agencies and organizations supporting SMEs provide support in accordance with the provisions of this Circular and a number of specific regulations such as supporting SME students to participate in domestic and overseas training programs including: tuition, materials, meals, accommodation, travel (including airfare).

In addition, the circular also provides aids to SMEs to maintain accounts on e-commerce platforms; helps SMEs to participate in international competitions on innovative start-ups, including: fees and costs of participation in the competition; eat and stay in the host country; travel (including airline tickets); transport documents, products, materials to participate in the contest.

This circular takes effect from June 25and2022.

2. Supporting interest rate of 2%/year of the state budget with business loans

The government issued Decree 31/2022/ND-CP of May 20and2022 on the state budget support interest rate for loans to enterprises, cooperatives and business households.

Accordingly, the interest rate supporting enterprises, cooperatives and business households is 2%/year, calculated on the balance of the loan. The actual duration of the supported loan must be within the specified period.

The duration of the support is calculated from the date of loan disbursement until the moment the client repays the principal, but must not exceed December 31st2023.

To be supported, customers must meet the following conditions:

  • The client has requested an interest rate subsidy, meets the loan conditions in accordance with the applicable law on the lending activities of credit institutions, branches of foreign banks;
  • Interest loan is a loan in VND for which a loan agreement has been signed and disbursed during the period of January 1st2022 to December 31st2023 and did not receive support from the state budget.

Decree 31/2022/ND-CP comes into force on May 20and2022.

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