The rules for special ‘re-opening loans’ have been adopted by the government. Applications may be submitted from June 1, 2020.
Entities (either legal entities or individual entrepreneurs) eligible for preferential loans should be employing people and conduct their business in ‘affected sectors’ (as defined by the Federal Tax Services) or in ‘sectors requiring support for resumption of activity’ (e.g. clothing production, furniture production, production of textile, production of household electrical appliances, production of consumer electronics, etc.).
The exhaustive list and other formal requirements are determined by the Decree of the Government of the Russian Federation N 696 "On approval of the Rules for the provision of subsidies from the federal budget to Russian credit organizations for the reimbursement of lost income on loans granted to legal entities and individual entrepreneurs to resume their activity in 2020" dated 05.16.2020.
The loan may be used to cover any documented business expenses, including wages and repayment of previously received loans. Credit funds cannot be spent on dividends, repurchasing own shares and shares in the authorized capital, or on charity.
The loan agreement can be concluded from June 1, 2020 to November 1, 2020.
|
NAZALI TAX & LEGAL |