Headlines 31/08/2021 09:09 SA

Principles of interest rate subsidy for small and medium startups are about to take effect

Văn Ngọc

On August 26, 2021, the Government promulgates the Decree No. 80/2021/ND-CP elaborating and providing guidance on implementation of several articles of the Law on Support for Small and Medium Enterprises (SME).

According to this document, startup SMEs and SMEs participating in industrial clusters and value chains will receive interest rate subsidy from the state budget when taking out medium and long-term loans from credit institutions to implement business plans and projects according to the following principles:

- They must be SMEs that meet the criteria for startup enterprises and the criteria for support for enterprises for their eligibility for participation in industry clusters and value chains, and have not yet enjoyed any state preferential policies on interest rates at the same time.

- The state budget provides interest rate subsidies for businesses in the form of post-investment support.

Each enterprise is entitled to interest rate subsidy for a production and business plan or project in a period of time.

- Borrowing enterprises will undergo the lending review and decision process carried out by credit institutions in accordance with law on lending operations of credit institutions.

Decree No. 80/2021/ND-CP is entering into force as of October 15, 2021, replacing Decree No. 39/2018/ND-CP dated March 11, 2018.

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