Support for start-up entrepreneurs was fixed in the state program

The new state target program for support and development of entrepreneurship, designed for 5 years, was approved by the deputies of the Supreme Council of the Pridnestrovian Moldavian Republic in the course of the plenary session in the second final reading. The total amount of funding for the program for 5 years will be about 14 million rubles. Approximately 2.6 million rubles will be allocated from the republican budget for all planned events in 2023.

The state program provides for the implementation of three main areas. My Business project will start in addition to the projects already known to Pridnestrovians, “Operation of a business school” and “Buy Pridnestrovian!” operating in the republic, aimed at supporting start-up entrepreneurs with the most promising business ideas. Approximately 5.5 million rubles will be allocated from the republican budget for this new project during 5 years of the state program.

24 start-up entrepreneurs with the most promising business projects will be able to receive state support per year: 12 in the form of a legal entity (regardless of the organizational and legal form and the chosen taxation regime) and 12 as an individual entrepreneur (working under a simplified taxation system).

As state support, start-up entrepreneurs will be provided with one-time targeted assistance to repay up to 30% of the body of the proposed loan. The final size of the one-time targeted assistance will depend on the amount that the novice businessman borrowed from the bank. However, there will be restrictions on the maximum loan amount. Thus, the loan amount for an individual entrepreneur will not have to exceed 80500 rubles (or $5000). The maximum amount of one-time targeted assistance from the state in this case will be 24150 rubles (or 1.5 thousand dollars). The maximum loan amount will be 161000 rubles (or $10,000) for a legal entity, and the maximum amount of one-time targeted assistance will be 48300 rubles (or $3000).

My Business project provides for the payment of 10% per annum of the amount of the outstanding soft loan at the expense of the republican budget. This means that the recipient of state support will pay only the difference between the total interest rate on the loan and the 10% paid by the state.

The authors enshrined a number of conditions necessary for participation in the state program. Thus, state support will be provided only to those young businessmen who have not previously carried out entrepreneurial activities. In addition, a novice entrepreneur must have a higher or secondary vocational education in the field in which he plans to carry out his activities in order to receive state support. Or have a business school certificate. One of the important conditions: a novice entrepreneur will have to finance at least 20% of the project cost from his own funds.

Priority will be given to business projects related to the priority areas of the economy - the manufacturing sector and the development of domestic tourism in the process of selecting applications for participation in the state program. They plan to provide state support, for example, for the purchase of transport, necessary equipment and machinery.

Full-fledged mechanism for supporting start-up entrepreneurs is fixed in the new state program, according to the Minister of Economic Development of the Pridnestrovian Moldavian Republic.

Appropriate measures of state support for start-up entrepreneurs were enshrined in the Law of the Pridnestrovian Moldavian Republic “On additional measures aimed at stabilizing the economy of the Pridnestrovian Moldavian Republic”. The new norms will come into force simultaneously with the state program for the support and development of entrepreneurship in the PMR for 2023-2027 after signing by the PMR President.