The Decree of the President of the Republic of Uzbekistan "On the implementation of the program Each family is an entrepreneur" No. PP-3777 dated June 7, 2018 was adopted in order to create conditions for each family to engage in entrepreneurial activities and to obtain a stable source of income.
In order to further provide full support to various segments of the population, on March 7, 2019, a new Decree of the President of the Republic of Uzbekistan No. PP-4231 was adopted “On additional measures for widespread public involvement in entrepreneurship and the development of family entrepreneurship in the regions”.
The following types of loans are provided under this Program:
- Microcredit for the development of family entrepreneurship - up to 150 minimum wages;
- Lending to small businesses registered in the prescribed manner - up to 1000 minimum wages;
- Crediting of investment projects of business entities - more than 1000 minimum wages;
The program includes concessional loans - at a rate of 8 percent per annum for a period of not more than 3 years with a 3-6 month preferential period for organizing a family business in any direction (except retail, catering and passenger traffic), such as: handicraft, clothing manufacturing, the cultivation of certain types of agricultural products, the organization of compact greenhouses, the manufacture of bakery products, home-based work, woodworking and other activities not prohibited by applicable laws.
Loans can be allocated for up to 5 years with a preferential period of up to 2 years, depending on the conditions of self-employment in accordance with the business plan of the project.
The list of documents for preliminary consideration of the loan project:
- loan amount, term of use, the purpose of the loan and the loan application indicating its availability;
- documents confirming the type of business;
- a business plan with an analysis of the flow of money;
- the necessary documents to determine the degree of credit standing;
- document on taxation.
Loans are not funded in the following areas:
- repayment of previously issued loans or any other debt;
- production of alcohol and tobacco products;
- trading intermediation;
- formation of working capital of catering organizations;
- the acquisition of unused personal property for production purposes;
- administrative expenses, including vehicle maintenance;
- furniture, mobile phones, and communication services are not intended for payment.
Preferential loans provided in accordance with the Decrees of the President of the Republic of Uzbekistan dated November 17, 2017 N PD-5242 "On measures for the further development of handicraft and comprehensive support of craftsmen", dated June 27, 2018 N UP-5466 "On the State Program" Yoshlar-Kelajagimiz " Resolution of the President of the Republic of Uzbekistan dated June 7, 2018 N PP-3777 "On the implementation of the program" Every family is an entrepreneur ", dated July 14, 2018 N PP-3856" On measures to develop and improve the efficiency of employment to the population ":
- according to the conclusion of regional or district (city) Centers on the basis of in-depth study of the desires and requests of families, projects of business entities and youth, the availability of sufficient conditions for their implementation, for projects offered by each family and business entities;
- after the delivery of goods (services) at the agreed price, subject to the satisfaction of the project owner by transferring funds to the account of the supplier of goods (services).
Borrowers who are individuals for a loan provide the bank with a recommendation on concessional lending provided for the development of family entrepreneurship, from sector leaders on socio-economic development of territories (hereinafter referred to as sector heads) and citizens' gatherings as a loan repayment guarantee.
Borrower - a business entity provides the Bank with one of the following types of documents as a means of repaying a loan:
- third-party warranty;
- insurance policies;
- property acquired through a loan;
- guarantee of the State Fund for the Support of Enterprise Development under the Cabinet of Ministers of the Republic of Uzbekistan;
- other types of support within the law.