Soft loans for social entrepreneurs proposed
Russian government is considering the possibility of developing soft loan programs for those entrepreneurs who work in the social sector. This was reported by the Deputy Prime Minister of the Russian Federation Olga Golodets at the V International Forum of Entrepreneurs and Investors in the Social Sector.
“We are currently developing additional measures to support the private sector because today there are difficulties on the markets. Therefore, we are now considering the possibility of further development of soft loan programs for those entrepreneurs who dedicate themselves to the social sector”, - she said.
According to Svetlana Povikalova, Director of the Department of Methodology and Portfolio Analysis of SME clients of Loko-Bank, the authorities can use several measures to support business:
“For borrowers - subsidization of interest rates, provision of grants from the state to secure project, which can be directed both at the development and early repayment of earlier loans, provision of guarantees from the subjects of the Russian Federation on interesting projects. For banks - refinancing bank's portfolio of borrowers with such profile under a reduced interest rate by the Central Bank; decrease of the coefficient of capital pressure on these loans.”
“Soft loans is quite an effective measure of support, which is widely used throughout the world, - says Dmitry Kipa, Director of Investment Banking Department QB Finance. - In addition, the government can offer entrepreneurs who work in the social sector, preferential tax treatment and various targeted support programs, through which businesses can obtain government funding for the development of these projects,”- added Svetlana Povikalova.
In addition, involving small and medium businesses to the mechanism of public procurement in the social setor can be an effective tool. It could also support entrepreneurs who work in the social sector. According to Olga Golodets, “not only does social entrepreneurship bring economic benefits to the society, but also directl benefit to everyone”.