Ulyanovsk Region Industrial Development Fund to Provide Four Enterprises with 70 Million Rubles

This decision was made at the meeting of the expert council of this regional organization.



Two Ulyanovsk enterprises will be able to implement their projects to manufacture import-substituting components for domestic cars; a local producer of fish goods will purchase all necessary raw materials; and another facility will refinance its current loan.

“We have started giving preferential loans to enterprises affected by the high alert regime in the Ulyanovsk region. I would like to remind you that by the Governor's decision, we increased the capital of the regional Industrial Development Fund by 350 million rubles, which allowed to introduce specialized software applications. We approved applications of four enterprises for a total amount of 70 million rubles. This will help to refinance existing commercial loans, to reduce the debt load by almost half, to release funds for current activities, to replenish the working capital for purchase of necessary raw materials, to pay salaries and to cover investment expenditures. To receive the loans, each of these enterprises had to keep their employees and should be ready to continue developing their production capacities,” - said Alexander Smekalin, Head of the regional Government.

The preferential loan to develop new products and import-substituting industries, as well as to replenish the working capital and to refinance investment loans, is issued with the interest rate from three to six percent per annum for up to 60 months. The maximum amount available is 30 million rubles.

According to Ruslan Gainetdinov, Chairman of the Board of Ulyanovsk Region Entrepreneurship Development Corporation, two such loans worth 33 million rubles were approved in 2020.

“We have applied for refinancing of the investment loan. We need this because of the coronavirus that caused cash shortages. This is a great bonus that will help us save money as the rate for the previous loan was significantly higher,” - said Alexander Demidov, Director of Ulyanovsk Precision Casting Plant.

The Regional Entrepreneurship Development Corporation was created фе the initiative of Governor Sergey Morozov. It has been working since February 2016. Twenty-nine investment projects have received financing since the organization's establishment. The concessional loans provided totaled 444.7 million rubles. These funds attracted additional investments worth more than 700 million rubles for development of the Ulyanovsk region's industry.

For additional information about work of the fund and conditions required to receive preferential financial products, please call (8422) 42-28-02.