Loan guarantee limit for SMEs will be doubled

The loan guarantee limit for active small and medium-sized companies (SMEs) will be doubled to 700,000 lei, while for newly founded ones will be trebled to 300,000 lei. The decision was taken at the meeting of the Coordination Board of the Organization for the Development of the SME Sector, Info-Prim Neo has learned from the Ministry of Economy. “This rise is important for determining the real financing necessities of the SMEs,” said the organization's head Iulia Iabanji. Until now, the guarantees could not exceed 300,000 lei for active enterprises and 100,000 for new ones. As a result of discussions, it was decided to approve a guarantee of 50% of the size of the loan, but at most 700,000 lei for an active company, and a guarantee of up to 70%, but not more than 300,000 lei for a new company. Deputy Prime Minister and Minister of Economy Valeriu Lazar stressed the necessity of developing the capacity to absorb financial resources following the rise in the loan guarantee limit. The fund of the Organization for the Development of the SME Sector is a state fund. It will be increased by at least 100 million lei so as to guarantee loans for about 700 companies initially.