In August 2014 the Development Bank initiated, developed and launched a basically new program of financial support to small and medium enterprises (SMEs). Its main objective is to ensure and enlarge access for SMEs to credit resources, as well as to conducting financial lease (leasing) operations for investment projects at different stages of their business development. The key program’s instrument is granting credits at an affordable price and with transparent and clear requirements to borrowers.
The areas where the Development Bank renders support to SMEs are not constant and change depending on the priority government goals. In the end of 2016 the Development Bank differentiated the product range in line with priority areas of SMEs development in the Republic of Belarus (support to start-up companies, innovations. Exporting enterprises, etc. See the section Catalogue of program products); together with funding of manufacturing and service areas, financing of trading enterprises also became possible .
Practical implementation of the program is carried out with the participation of commercial partner banks and a leasing company (JSC Promagroleasing) that have experience in cooperation with small and medium enterprises and implies the use of a two-level system:
on the first level the Development Bank provides financial resources to partner banks and a leasing company, selected by established criteria ;
on the second level the partner banks and a leasing company select borrowers under the criteria agreed upon with the Development Bank, evaluate their financial condition and proposed projects, as well as decide on granting loans at a specified marginal rate.
Besides, in order to expand the number of potential program participants an additional mechanism was specified providing for support through financing of leasing companies by partner –banks to be followed by leasing out of purchased property to SMEs. Thus, the SMEs now have the possibility to receive financing not only directly in banks, but also through leasing entities of the Republic of Belarus.
There are 10 partner banks participating in the program: (JSC “Belgazprombank”, JSC “Belarusky Narodny Bank”, JSC “Belinvestbank”, CJSC “MTBank”, CJSC “Alfa-Bank”, "Priorbank" JSC, JSC “Bank Moscow-Minsk”, JSC "Belagroprombank", OJSC “Paritetbank”, CJSC BTA Bank) and leasing companies JSC Promagroleasing, JLLC Raiffeisen-Leasing and LLC ASB-Leasing.
The priority objectives of providing financial support to SMEs operating in the manufacturing and service sectors are the following:
Implementation of new technologies;
expansion of export potential, import-substituting production;
creation, enlargement of physical infrastructure;
acquisition, reconstruction, modernization, construction, capital repairs of fixed assets.
Within the frames of financial support program the investment projects in the following businesses are not to be financed:
The partner bank grants loans to SMEs in terms of specification of banking products created by the Development Bank.