Ulyanovsk Region to Introduce New Support Measures for Business

This was announced by Governor Aleksey Russkikh at a plenary meeting of XIII Business Climate in Russia Forum, which was held on 8 December as part of the national project "Small and Medium-Sized Businesses and Support for Individual Entrepreneurs".

The Governor said, “While discussing possible improvements to the regional tax legislation with Alexander Chepukhin, Chairman of the budget committee of the Legislative Assembly, we came to one conclusion: we need to move from unconditional support measures, which were provided as tax benefits during the unstable period of 2020-2021, to the state stimulus packages. And this approach was supported by the most active regional public association of entrepreneurs " OPORA RUSSIA". It is very important for us. The Federal Government is also focusing on such activities now. All business support measures will help with implementation of priority tasks for the region's development and will also become a reliable platform for interactions between the government and business.”

New support measures for SMEs will be divided into two major clusters. The first one will seek to increase the number of jobs, legalize labor and wages, update fixed assets, and improve workforce productivity and investment activities. At least 200 million rubles will be allocated for these purposes in the near future.

Starting from January 2022, Ulyanovsk region's entrepreneurs will be able to receive subsidies worth three minimum monthly wages for newly created jobs, provided that they are active for at least one year. Another benefit is compensation of 70% for the first payment (no more than two million rubles) under the equipment leasing agreement. The regional Fund for Development and Financing of Entrepreneurship also provides loans for equipment purchase at the rate of no more than 3%. Novice entrepreneurs who have worked with the regional fund for at least six months will be able to get a tax-free loan of up to one million rubles. In addition, the head of the region instructed the development department of the regional Government to expand possibilities for SMEs to use income tax investment deduction.

The second part of support package will focus on the principle of mandatory entitlement payments for spheres under restrictions. This is a binding measure that provides compensation of 50% for rental and utility costs during restrictions. About 50 million rubles will be allocated for this purpose.

“The Ulyanovsk region has always been among territories that pay particular attention to business climate, so we think it is necessary to study your experience in developing support measures and solutions that help entrepreneurs overcome obstacles in time of crisis,” said Alexander Kalinin, President of the All-Russian

Non-Governmental Organization of Small and Medium Business "OPORA RUSSIA".

According to Nikolai Solodovnikov, Chairman of the regional branch of OPORA RUSSIA, incentive measures will seek to create new enterprises and upgrade facilities of the existing ones.

In 2021, 185 Ulyanovsk enterprises received support of than 420 million rubles under the microfinance programme. The Industrial Development Fund financed twelve facilities (more than 180 million rubles), and the Federal Industrial Development Fund approved seven transactions, including two joint ones worth 2 billion rubles. In total, the projects are worth 4.8 billion rubles.

According to Ruslan Gainetdinov, Chairman of the Board of Ulyanovsk Region Corporation for Development of Industry and Entrepreneurship, about 41.5 thousand entrepreneurs are working in the region today, and about seven thousand of them have started their business this year. Small enterprises have created about 17 thousand new jobs in 2021.

During the pandemic, the region issued six support packages, which included reimbursement of rental and utilities payments, as well as tax relief for the patent system and STS, suspension of unscheduled onsite inspections by various supervisory authorities, and a free programme for local manufacturers to help them come to marketplaces. To restore the industries affected by non-working days in November, it is planned to return compensations for rental and utility costs in addition to the federal support. More than 1.7 billion rubles were allocated for anti-crisis business stimulus over the last year and a half.