Grants and guarantees for developing SMEs

The Organization for the Development of the SME Sector working under the Ministry of Economy provides guarantees for businesses that want to take out loans, but have nothing to pledge. “The guarantees for active companies represent 50% of the value of the loan, but not more than 300,000 lei, whole for newly created companies – 70%, but not more than 100,000 lei,” the organization’s legal consultant Mihai Malashevski said at a meeting with Chisinau businessmen, Info-Prim Neo reports. ”We hope to contribute to the national economy’s enhanced competitiveness by promoting the development of the small and medium-sized companies in Moldova,” Mihai Malashevski said. The repayment period for active companies is up to five years, while for new companies – three years. The guarantee commission does not exceed 2%. The Business Advisory Services (BAS) Program of the European Bank for Reconstruction and Development launched in 2009 provides co-financing for consultancy projects in the field of energy efficiency. “The beneficiaries of the program are economic entities that have worked for at least two years, have more than ten employees and whose capital is mainly local and private,” said BAS consultant Nadejda Mustea. They can receive a non-reimbursable grant of 70% of the project’s value, but not more than €10,000. Elena Costetski, the owner of a limited liability company that sells cosmetic products and detergents, welcomed the support offered in developing the business. “I want to expand my business, but the interest on bank loans is too high. Now I think I will profit from the Government’s offer,” she said. As part of the mentioned projects, the beneficiaries of guarantees and grants will also receive free assistance in working out projects to access financial resources, expand the business and validate the necessary documents.