Soft loans for IT companies in Russia

Benefits and support measures for IT companies in Russia

Main article: Benefits and support measures for IT companies in Russia

Preferential mortgage for IT specialists in Russia

Main article: Preferential mortgage for IT specialists in Russia

2024

Launch of a program for ICT startups

Ministry of Economic Development of Russia launched a concessional lending program for startups in the field. information and communication technologies (ICT) The program is aimed at supporting small technology companies actively developing innovative technologies, and is designed to stimulate their growth and development. This was announced in October 2024 by the director of the department of strategic development and innovation Ministry of Economic Development Russia Valeria Vorobyova. More here

The Ministry of Digital Development of the Russian Federation asked to return preferential rates on loans for small IT-Business

In early October 2024, it became known that IT companies appealed to the Ministry of Digital Development of the Russian Federation with a request to help with the return of preferential rates on loans of 3% received by market participants under the program "Take-off - from startup to IPO" ("High"). Earlier, SME Bank announced an increase in the rate on such loans to 12%.

The initiative "High" has been implemented since April 2022 by the SME Corporation Ministry of Economic Development and on behalf of the President, and Russia Vladimir Putin its operator is "SME Bank." Soft loans with a rate of 3% are issued to high-tech enterprises of small and medium-sized businesses. The budget for loan subsidies included 4 billion for rubles three years: 750 million rubles in 2022, 1.4 billion rubles in 2023 and 1.8 billion rubles in 2024. However, taking into account the increase in the key rate Bank of Russia and the high interest of technology businesses in a preferential lending program, the limit of budget allocations to subsidize the interest rate by SME Bank was exhausted ahead of schedule. Therefore, a decision was made to raise the rate to 12%. Moreover, the new measure will apply to both new and already issued loans.

The Ministry of Digital Development of the Russian Federation asks to return preferential rates on loans for small IT-Business

IT companies are asking to maintain the previous conditions under already concluded contracts, saying that an unscheduled increase in the lending rate is critical for many of them and may lead to bankruptcy of a number of enterprises. The corresponding letter addressed to the head of the Ministry of Digital Engineering Maksut Shadayev was sent by leading technological associations - the Association of Computer and Information Technology Enterprises (APKIT), the Association of Software Product Developers (ARPP) "Domestic Software," "Russoft," the Association "We IT," the Association of Russian Developers and Electronics Manufacturers, the Association "Fast-Growing Technology Companies" of National Champions "and the Union of Support and Development of Technology Companies.

At the same time, the Ministry of Digital Development representative calls the new parameters "moderate," noting that "commercial rates often exceed 27%." The Ministry of Economic Development says that the department and the SME Corporation have agreed on the allocation of additional subsidies to cover existing loan agreements at a rate of 12% with the Ministry of Finance.^[1]

Prime Minister Mikhail Mishustin allocated 2.5 billion rubles for soft loans for IT companies

Prime Minister Mikhail Mishustin signed a decree on the allocation of 2.5 billion rubles to support the program of concessional lending to IT companies that implement digital transformation projects based on domestic decisions. The press service of the Cabinet of Ministers announced this on August 15, 2024.

Prime Minister Mikhail Mishustin

Federal funding will allow the completion of the implementation of previously supported projects, which is especially important for the early digitalization of sectors of the economy and reducing dependence on foreign counterparts. Including we are implementing this with the help of our information centers of competencies, which practically work in all sectors, - said Mishustin at a government meeting on August 15, 2024.

According to him, the allocated funds will go to the development and implementation of Russian products in the field of information technology.

Under the program of concessional lending to digital transformation projects, the subsidized rate is from 1 to 5% per annum, for accredited enterprises - no more than 3%. The loan size is up to 10 billion rubles. They can be used to purchase software and licenses for it, create your own  isoft technologies, pay employees  and for other needs. The federal budget for the implementation of this program in 2024 provides for more than 4 billion rubles.^[2] 

2023

Small IT business attracted soft loans worth 30 billion rubles

In 2023, small and medium-sized businesses in the IT sector attracted soft loans by 30 billion rubles, which is 96% higher than a year ago. Such data in the SME Corporation led at the end of February 2024.

According to TASS, citing materials from the corporation, most of the subsidized loans in 2023 were taken by small and medium-sized businesses (SMEs) from the IT and software development sectors in the following regions:

• Moscow (15.8 billion rubles, + 112% by 2022);
• Petersburg (3.3 billion rubles, + 107%);
• Tatarstan (1.6 billion rubles, + 57%);
• Bashkortostan (0.7 billion rubles, + 418%);
• Samara region (0.6 billion rubles, + 129%).

Small business and medium IT in 2023 attracted soft loans for 30 billion rubles

Support for small and medium-sized businesses in the IT sphere and SMEs - software developers - is one of the priority tasks, the solution of which helps to increase the level of technological sovereignty of our country, to solve the issue of import substitution. Thanks to the tools of the National Guarantee System (NGS) and preferential loans, the volume of support for Russian SMEs operating in these areas is increasing, "said Alexander Isaevich, CEO of the SME Corporation.

He also cited data for 2019, when, according to Isaevich, small and medium-sized businesses from the IT sector attracted about 5.3 billion rubles of soft loans. Thus, in 2023, the volume of issuance of such loans in Russia soared by more than 5.5 times compared to the result of 4 years ago.

In addition to the SME Corporation, the National Guarantee System includes SME Bank and regional guarantee organizations. Representatives of the SME segment with their help can receive financing from banks without collateral or if it is insufficient, using guarantees and guarantees. Subsidized loans are issued within the framework of the national project "Small and Medium Enterprises."^[3]

Banks cancel soft loans for Russian IT companies

In early December 2023, it became known that banks began to notify Russian IT companies that received preferential financing under the Ministry of Digital Development program (Resolution No. 1598) about raising rates. The reason is the lack of state funding.

In accordance with this document, the minimum loan amount is 5 million rubles, the maximum is 5 billion rubles. At the same time, the Ministry of Digital Development undertakes to provide banks with subsidies aimed at compensating for the falling rate when preferential lending to IT companies. As of the end of November 2023, 164 projects received support under the initiative, and the total amount of lending amounted to 82.3 billion rubles.

According to the Kommersant newspaper, referring to information received from market participants, the Ministry of Digital Development in October 2023 refused to subsidize banks for lost income. As a result, financial institutions are forced to raise credit rates for IT companies from preferential to market. Thus, Sberbank began to send notifications about raising the rate from 3-5% to 18-18.5%. VTB took similar measures. The founder of the CRM-integrator "Pinol" Alexey Okara said that approximately 150 IT companies faced a problem by the beginning of December 2023. The reason for the lack of funds is the increase in the key rate of the Central Bank. Due to similar difficulties, the mechanism of preferential lending to electronics manufacturers stopped working.

The Ministry of Digital Development, in turn, declares that the concessional lending program within the framework of Resolution No. 1598 continues to operate. Moreover, after raising the key rate, the department overestimated the amount of necessary funding and allocated additional money. For 2024, the budget provides for about 4.1 billion rubles to subsidize the interest rate on preferential loans. This is 49% more than the amount of funds allocated for relevant needs in 2023^[4]

Russian electronics manufacturers stopped issuing preferential loans

Since November 1, 2023, Russian developers and electronics manufacturers, including base stations, smartphones and data storage systems, have ceased to issue preferential loans. This situation is due to the fact that the funds for subsidizing their activities and purchasing the electronic component base (ECB) have been exhausted.

Sources on the market told Kommersant that electronics manufacturers switched to market rates (15-20% per annum) on loans. Prior to that, in accordance with government decree No. 407 of March 2022, they could receive money for purchases of an electronic component of the base (ECB) at a rate of 1-5%.

The Ministry of Digital Development explained that they had already sent a request for additional funding from the program "the development of the electronic and radio-electronic industry." Also, by the beginning of November 2023, the issue of distributing the program for 2024 is being worked out.

At the same time, one of the interlocutors of the publication indicated that the preferential rate is likely to increase along with the key, which means that companies will take loans less often. Accordingly, he concluded, the development of Russian electronics will slow down.

According to Ivan Pokrovsky, Executive Director of the Association of Developers and Manufacturers of Electronics, with an increase in credit rates for the purchase of domestic ECB, financing of the purchases themselves from companies will be difficult, and the risks of cash gaps will increase, but this will not affect the choice of components, since the scope of application of domestic components is determined by regulation.

Now there is practically no price competition between Russian and imported components, for objective reasons, Russian ones are more expensive by tens of percent, for some groups - two to three times, - he said in a conversation with the publication.[5]

Ministry of Digital Development of the Russian Federation increases financing of preferential IT loans by 25%

On October 12, 2023, it became known that the Ministry of Digital Development of the Russian Federation proposes to the government to increase funding for concessional lending programs for IT companies by 25%. This is due to the increase in the key rate of the Bank of Russia, which was increased to 13% per annum on September 15, 2023.

According to the Vedomosti newspaper, proposals to increase the financing of preferential IT loans in 2023 were formed "in order to balance the loan portfolio and maintain the interest rate for borrowers." Companies can receive a preferential loan at a rate of 1% to 5% per annum for the development and implementation of digital transformation projects. The Ministry of Digital Development compensates the bank that issues a preferential loan for the difference between the preferential rate paid by the borrower and the key rate of the Bank of Russia. Thus, due to the increase in the key rate, additional funds were required.

Initially, in 2023, 2 billion rubles were allocated in the federal budget for preferential IT loans. Ministry of Digital Development intends to increase the amount by another 500 million rubles. Additional funds can be obtained by redistributing the budget from other departmental projects included in the national program "Digital Economy."

We propose to compensate for the increase in the rate by redistributing current resources. The proposal was sent to the government, we count on its support, - noted in the Ministry of Digital Development.

The Bank of Russia says that the growth of inflationary pressure is manifested in an increasingly wide range of products and services. The increase in domestic demand exceeds the possibilities of expanding output. As a result, there is an increase in demand for imports, which leads to a weakening of the ruble. The current monetary policy is expected to create conditions for the economy to return to a balanced growth trajectory. The Bank of Russia predicts that the GDP growth rate will be 1.5-2.5% in 2023, 0.5-1.5% in 2024, 1.0-2.0% in 2025 and 1.5-2.5% in 2026.^[6]

Ministry of Digital Development of the Russian Federation revises financing of preferential IT loans

In early October 2023, it became known that the Ministry of Digital Development of the Russian Federation overestimates the resources to provide IT projects that received support in the form of soft loans. This is due to a change in the key rate of the Bank of Russia, which on September 15, 2023 was increased by 100 basis points (bp) - up to 13% per annum.

According to the Vedomosti newspaper, referring to information received from a representative of the Ministry of Digital Development, by the beginning of October 2023, more than 160 projects were supported under the concessional lending program. The total loan portfolio is approximately 82 billion rubles. At the same time, it is emphasized that uncertainty remains regarding the further level of the key rate. Therefore, changes are being made to the program for financing soft IT loans. In particular, the timing of consideration of new applications has increased, and some applications for loans have been suspended. The Ministry of Digital Development does not exclude the likelihood that additional funds from the budget may be required to ensure the initiative.

Taking into account the fact that uncertainty remains regarding the further level of the key rate, in some cases - when it comes to large projects - the consideration of applications may be suspended or the period for their consideration is extended, - said the representative of Ministry of Digital Development.

The Bank of Russia notes that inflationary pressure in the country remains high. According to estimates as of September 11, 2023, annual inflation increased to 5.5% after 4.3% in July and 5.2% in August of this year. High demand for imports with reduced exports is the main factor in the weakening of the ruble since the beginning of 2023. The Bank of Russia intends to make further decisions on the key rate, taking into account the actual and expected dynamics of inflation regarding the goal, the process of structural restructuring of the economy, as well as assessing the risks from internal and external conditions and the reaction of financial markets to them.^[7]

Soft IT loans in Russia will be financed by companies using foreign software

On May 17, 2023, it became known about a new initiative of the Ministry of Digital Development of the Russian Federation regarding the program of concessional lending to IT companies. According to the bill prepared by the department, business in the Russian Federation will be able to continue to legally use foreign software, deducting funds to a special account, part of the funds from which will be spent on financing soft loans for IT developers.

According to Vedomosti, the payment of licenses will be made at the same tariffs (how much was paid before the company left Russia) for special accounts of type "O" (ruble accounts in a number of banks provided for by presidential decree for settlement with foreign companies under sanctions pressure). If the remaining funds in the account are not in demand by the copyright holders, then later they will be transferred to a fund to support the IT industry, for example, RFRIT, a source in the Government of the Russian Federation explained to the publication .

According to the interlocutor of the publication in IT companies, these funds can be directed to import substitution projects within the framework of industrial competence centers and competence centers for the development of Russian system-wide and application softwares, which were instructed to create Prime Minister Mikhail Mishustin in June 2022.

The Ministry of Digital Development explained to Vedomosti that the government will be able to empower the authorities to form lists of software, which can be used under certain conditions without the consent of the copyright holders with the possibility of paying compensation in accordance with the procedure established by the government. The ministry added that the term of use of foreign software will be determined after the release of the licensing law. The introduction of such a mechanism is necessary to stimulate demand for the use of domestic software, as well as to speed up the process of import substitution of software.^[8]

Mishustin softened the conditions for IT companies to obtain preferential loans

The government softened the terms of the program of concessional lending to digital transformation projects with a maximum rate of 3% per annum. The corresponding decree was signed by Prime Minister Mikhail Mishustin, the press service of the Cabinet of Ministers said on May 15, 2023.

The document canceled the condition that an IT company applying for a loan had to receive tax breaks and pay reduced insurance premiums.

Thus, even more entrepreneurs can take advantage of state support, create and release modern and popular products on the market... Now their [soft loans] will be able to issue accredited enterprises that did not enjoy tax preferences provided for the IT-Business, as well as the right to reduced insurance premiums. Previously, such a condition was mandatory, - said Mikhail Mishustin during a meeting with Deputy Prime Ministers on May 15, 2023.

The government expects that softening the conditions of the program will maintain the planned dynamics of the introduction of Russian software and will ensure a higher level of independence from the import of software products.

The program of concessional lending to digital transformation projects based on Russian software solutions was launched in December 2019. The loan volume can range from 5 million to 10 billion rubles. The funds can be used for the purchase, installation, adjustment and other measures for the commissioning of hardware and software systems, labor costs and insurance payments and a number of other purposes. The Cabinet adds that due to concessional loans, companies will be able to conduct their current activities and implement new projects. In addition, credit funds can be directed to incentive payments to specialists and reimbursement of past expenses.

Government of the Russian Federation Resolution of May 6, 2023 No. 707

Problems with obtaining preferential loans from electronics manufacturers

In March 2023, it became known that Russian electronics manufacturers faced problems in obtaining preferential loans at a rate of 5% due to approvals of departments. According to RBC, the Ministry of Digital Development of the Russian Federation returns applications for the conclusion of agreements for subsidies, since it has not received budget allocations and limits of budget obligations.

The representative of Sberbank confirmed to the publication that by March 22, 2023, the credit institution does not issue these preferential loans, but will continue to do so immediately after the conclusion of the agreement and the allocation of the subsidy limit, the representative said.

Soft loans to Russian manufacturers of computers, laptops, tablets, servers, data storage systems began to be provided in March 2022, after the introduction of Western sanctions. It was assumed that they would be issued until the end of 2022, but later the government extended this support measure to 2023.

"Delay" in obtaining loans to the publication was confirmed by the head of the consortium "Computer Engineering" Svetlana Legostaeva. A representative of the Russian manufacturer of IT equipment F + tech told the publication that not all manufacturers were able to take advantage of loans in 2022: for a long time, the government decree existed only for official use and not all companies could meet the stated requirements. In 2023, loans will also be available only to those who took them in 2022: the measure will not stimulate the market, but, on the contrary, will cause the opposite effect and distort the competitive field, the interlocutor of RBC believes.

Norsi-Trans CEO Sergei Ovchinnikov also noted that it is necessary to simplify the conditions for obtaining preferential loans.

The downside is that money can be obtained for specific purposes (procurement, remuneration, etc.). And you need the opportunity to receive them at the expense of the enterprise and use them for current activities, "he said.[9]

Mishustin approved soft loans for Russian manufacturers of computers, smartphones and printers

At the end of January 2023, Prime Minister Mikhail Mishustin signed a decree expanding the program of concessional lending to electronics manufacturers. It now includes not only computing equipment (computers, laptops, tablets, servers, data storage systems), but also telecommunications and office equipment, including printers, scanners, faxes, mobile and landline phones. In addition, the period of concessional lending has been increased from one year to five years.

With the help of credit funds, you can purchase an electronic component base, components and materials necessary for the production of equipment. The maximum loan size is 100 billion rubles.

According to Kommersant, manufacturers can receive loans from 13 banks (VTB, Sberbank, PSB, etc.) at a rate of 1-5% per annum to replenish warehouse stocks of components. The falling income on loans due to subsidies to banks compensates the Ministry of Digital Development. According to the source of the newspaper, in 2022, within the framework of preferential loans, equipment manufacturers have already received about 100 billion rubles, which "made it possible to solve the working capital problem when, at the beginning of the sanctions, distributors began to demand prepayment." Most often, according to the interlocutor of the publication, it was possible to get loans from VTB, Sberbank, Alfa Bank. They did not specify the volume of lending under the program.

The president of the Aquarius group, Vladimir Stepanov, in a conversation with Kommersant, called concessional lending to electronics manufacturers one of the most effective programs to support the industry.

This made it possible to increase working capital and, as a result, to increase the volume of production of Russian computer equipment by tens of percent in the past [2022] year compared to 2021, "he said.

According to Sergey Sukhman, CEO of Zelax (produces modems, gateways, routers), the problem of expensive loans is relevant for the industry, but more manufacturers need state help in solving logistics problems.^[10]

2022

Developers of industrial robots in Russia included in the state support program

Prime Minister Mikhail Mishustin signed a government decree, which added manufacturers of industrial robots and robotic devices to the program for subsidizing the machine tool industry. The press service of the Cabinet of Ministers announced this on December 19, 2022. Read more here.

Refusal to lend without real estate collateral

IT companies in Russia are not given preferential loans without real estate collateral. Vedomosti writes about the refusals of large banks with reference to the heads of three technology companies.

By the beginning of December 2022, there are two concessional lending programs for the IT sector in the Russian Federation: a digital transformation lending program and a program for backbone IT companies. The first should last until 2024., About 30 IT companies used it, a Ministry of Digital Development spokesman told the newspaper in early December 2022. The second program is valid until the end of 2022. By the beginning of December 2022, 14 companies received loans on it.

However, Artwell told the publication that Sberbank and VTB refused to issue a loan without collateral. The organization tried to take advantage of one of the programs in July 2022.

{{quote 'Both banks confirmed that they do not lend under this program without collateral. At the same time, the pledge should be property, the guarantee of the SME Corporation is not ready to consider, - said Artwell CEO Nikolai Apurin. }} According to Alexander Muravyov, CEO and founder of Aidi, in the summer of 2022, Sberbank and VTB also offered a real estate loan of at least 40%. Banks refused to consider intangible assets as collateral.

Шаблон:Quote 'As a result, for a soft loan from Ministry of Digital Development, banks want to get a deposit from IT companies in the form of real estate, which IT companies most often do not have, "Muravyov explained. Industry experts interviewed by Vedomosti confirm the existence of such problems with the issuance of loans to IT companies and note that the problem is that the percentage of loans in the industry is very small, 2-3%. IT enterprises do not own significant material property, for example, machines, buildings, and bank loans are designed only for "hard" collateral.^[11]

The government has significantly reduced subsidies for loans for IT companies and preferential mortgages

In early October 2022, it became known about a significant reduction in subsidies for loans for IT companies and preferential mortgages in Russia. The order to change the amount of funds allocated by the government was signed by Prime Minister Mikhail Mishustin.

As Forbes writes with reference to this document, the amount of funds for subsidies on preferential loans to replenish working capital is reduced from 3 billion rubles to 500 million, that is, 6 times. Preferential loans were issued to systemically important accredited organizations in the IT field. By the same order, the amount of loans issued to IT companies in 2022 is reduced from the initial 54.5 billion to 20 billion rubles.

Allocations for subsidizing preferential mortgages for employees of IT companies were reduced to 500 million rubles from the original 1.5 billion rubles. The subsidy is provided to the Дом.РФ Development Institute to reimburse banks for lost income on mortgage loans for employees of accredited IT organizations. The clause on the allocation of 3 billion rubles to subsidize concessional lending to digital transformation projects was declared invalid.

In mid-September, the Government of the Russian Federation adjusted the decision to allocate an additional 80 billion rubles from the reserve fund to subsidize soft loans for backbone industrial and trade enterprises, reducing the amount of funds to 35 billion rubles.

Concessional lending programs for backbone enterprises were introduced at peaks in interest rates, in the current conditions they will be completed, said the head of the Ministry of Economic Development Maxim Reshetnikov in early September 2022. In total, 8 concessional lending programs were adopted for backbone organizations in different sectors of the economy with different interest rates for each sector, in a number of industries, orders have already been issued that correct the amount of financing in connection with the curtailment of the program.^[12]

Russian microprocessor developer received a preferential loan of 200 million rubles

SME Bank, a subsidiary of the SME Corporation, provided a loan in the amount of 200 million rubles to the Microprocessor Technologies research and production enterprise, a domestic developer of microprocessor technology. This was announced on September 20, 2022 to TAdviser by representatives of SME Bank. Read more here.

SME Bank in 5 months opened soft loans to high-tech companies for 3 billion rubles

For five months of 2022, SME Bank opened credit lines to Russian innovative companies in the amount of about 3 billion rubles. Of these, entrepreneurs have already used support in the amount of more than 1 billion rubles. The bank announced this on September 5, 2022. Read more here.

Ministry of Digital Development will allow IT companies to replenish settlement accounts with the wrong bank where the loan is issued

On August 31, 2022, the Ministry of Digital Development of the Russian Federation announced new measures to support IT companies that were developed by the department. The relevant draft government decree developed by the ministry clarifies the conditions for granting preferential loans to system-forming IT companies. The proposals are as follows:

• allow system-forming organizations in the field of small and medium-sized businesses to apply for a loan (by the end of August 2022, the document contains a corresponding ban);
• the company can draw up several loan agreements with different banks, but the total amount is limited. To track the credit limit per company, it is proposed to provide for the obligation to notify the organization about the concluded loan agreements;
• the company can replenish its settlement accounts opened in another credit institution (not where the loan is issued) for settlements with foreign suppliers and payment of wages by the borrower.

The proposed changes are formed on the basis of the practice of implementing similar programs for concessional lending to backbone organizations, and will also allow supporting the financial and economic condition of market participants in the field of information technology, and will make the concessional lending program more accessible to IT organizations, the explanatory note to the draft resolution says.

At least 10 banks will take part in the concessional lending program. As noted in the document, about 30 organizations plan to receive preferential financing, and by the end of 2022 the volume of the loan portfolio issued will be at least 20 billion rubles.

The Ministry of Digital Development will simplify rules of preferential crediting of the IT companies

On August 18, 2022, it became known about the decision of the Ministry of Digital Development of the Russian Federation to simplify the rules for concessional lending to IT companies.

As Interfax reports with reference to the corresponding draft government decree developed by the department, new lending rules are proposed for digital transformation projects implemented on the basis of Russian IT solutions. It is assumed that not only existing recipients of tax benefits will be able to apply for loans at a rate of 1% per annum, companies will also be able to pay dividends at their own expense.

The ministry considers it necessary to abolish the condition that an IT company should receive tax breaks and apply reduced insurance premiums. The purpose of the initiative is to attract additional funding to the industry and provide preferential loans to Russian developers for current activities and the implementation of new projects.

The Ministry of Digital Development also proposed to cancel the ban on the placement of own funds on deposits (the lifting of the ban does not apply to the funds of a preferential loan) and clarify the restrictions on the use of preferential credit funds to maintain the financial and economic condition of market participants in the field of information technology, as well as to ensure wider access for IT organizations.

The proposed changes will support the financial and economic condition of market participants in the field of information technology, make the concessional lending program more accessible to IT organizations, as well as ensure the preservation of the planned dynamics of the implementation of Russian software and the required level of import independence, the explanatory note says.[13]

The government allocated 130 billion rubles of soft loans to Yandex, VK and OZON

In August 2022, the Government of the Russian Federation allocated 130 billion rubles of soft loans to Yandex, VK and Ozon. The funds will be used to pay off current payments to investors who, due to the delisting of shares in these companies from foreign exchanges, received the right to demand the redemption of all issues.

Mishustin launched a program of concessional lending to strategic organizations in the IT sector

At the end of April 2022, Prime Minister Mikhail Mishustin signed a decree approving the launch of a concessional lending program for strategic organizations in the IT sector. This initiative has become part of a set of measures to ensure the sustainability of the economy in the context of external sanctions. Read more here.

Mishustin approved the rules for concessional lending to IT startups

At the end of March 2022, Prime Minister Mikhail Mishustin signed a decree approving the rules for concessional lending to IT startups. According to the press service of the Cabinet, loans for small and medium-sized enterprises (SMEs) producing high-tech and innovative products will become more affordable thanks to state support.

In accordance with the document, the interest rate on preferential loans will be 3%. The difference between market and preferential rates to the lender will be reimbursed by the state. Loans will be provided for investment purposes and to replenish working capital for up to three years. The maximum loan size is 500 million rubles.

The federal budget for subsidizing such preferential loans for three years provides for almost 4 billion rubles: in 2022 - 750 million rubles, in 2023 - 1.4 billion rubles, in 2024 - 1.8 billion rubles.

The borrowing enterprise must meet certain criteria. It is a subject of SMEs, has the status of a tax resident of the Russian Federation, its main type of economic activity, information about which is contained in the Unified State Register of Legal Entities as of January 1 of the year preceding the year of applying for a loan, corresponds to one of the priority types of economic activity of SMEs. The company should not belong to SMEs from Part 3 and 4 of Art. 14 of the Federal Law "On the Development of Small and Medium-Sized Businesses in the Russian Federation" (investment funds, pawnshops, trade in excisable goods, etc.), own directly or indirectly more than 25% of shares (shares) in the authorized (share) capital of legal entities not related to SMEs.

For small organizations producing high-tech products, this is an additional opportunity to implement their promising ideas and projects and become new technological leaders, - said Mikhail Mishustin, opening a meeting with Deputy Prime Ministers on March 28, 2022.[14]

The Ministry of Digital Development is working to make grants and loans more accessible to IT companies

Minister of Digital Development, Communications and Mass Media Maksut Shadayev proposed to simplify the form of applications for grants for IT companies. In his opinion, the existing formal procedures restrain the development of the market. He spoke about this at an expanded meeting of the State Duma Committee on Information Policy, Information Technology and Communications on March 22, 2022.

According to the minister, it is necessary not only to significantly increase the amount of grant support aimed at stimulating the development of the domestic IT market, but also to simplify the application process. (Read more here)

The Government of the Russian Federation approved credit holidays for manufacturers of software and computers

In March 2022, Prime Minister Mikhail Mishustin signed a decree approving a list of industries for providing credit holidays to small and medium-sized businesses. This list includes manufacturers of computers, electronics and optical optical products, as well as software developers.

According to the press service of the Cabinet, an entrepreneur can take a deferral for the repayment of a loan. Borrowers who have entered into a loan agreement before March 1, 2022 will be able to apply for credit holidays. You can apply for a deferral or a decrease in the amount of payments until September 30, 2022. The maximum period of credit holidays is 6 months.

Instead, you can also arrange a debt restructuring - this is a preferential change in the basic conditions of the contract, for example, the loan repayment schedule or the composition of the collateral under the contract. The new conditions will help the borrower fulfill obligations in a comfortable mode.

Any use of materials is allowed only if there is a hyperlink

In addition to IT, the industries to which credit holidays are available included:

• agriculture;
• science;
• education;
• health care; culture;
• hospitality;
• sport;
• catering;
• wholesale and retail;
• manufacturing industries, including the production of medicines, food, clothing, furniture, household chemicals, electrical equipment, rubber and plastic products.

In total, the list includes more than 70 OKVED codes (All-Russian classifier of economic activities)

It is noted that the list is compiled taking into account the Western sanctions imposed on Russia and the proposals of business representatives. The resolution was prepared within the framework of a set of measures proposed by the Government of the Russian Federation to support citizens and businesses in the context of sanctions.^[15]

2021

Chernyshenko: IT companies received preferential loans for 49.5 billion rubles

As part of the national program "Digital Economy" in 2021, 57 projects of Russian IT companies received grants totaling 4.1 billion rubles, and 73 projects used preferential loans in the amount of 49.5 billion rubles. Such data in early June 2022 were cited by Deputy Prime Minister Dmitry Chernyshenko.

According to him, by the end of 2021 in Russia there were about 14 thousand accredited domestic IT companies against a little more than 4 thousand at the beginning of the same year. Also, at the end of 2021, the incomes of such companies and the level of wages of employees increased, added the Deputy Prime Minister.

Earlier, Dmitry Chernyshenko said that the cumulative effect of measures to support the IT industry exceeded 49 billion rubles.

The Ministry of Digital Development of Russia provides support to Russian organizations by providing preferential (subsidized) loans through authorized banks for the implementation of digital transformation projects implemented on the basis of Russian solutions in the field of information technology.

• The size of the preferential loan rate: from 1 to 5% (up to 3% for accredited IT organizations);
• The size of the loan for the implementation of the project: minimum - 5 million rubles, maximum - 5 billion rubles.
• The size of the loan for the implementation of the program (set of projects): minimum - 500 million rubles, maximum - 10 billion rubles.

The terms of the loan transaction are determined taking into account the needs of the client, his financial condition and business reputation. To obtain a preferential loan, such companies must send a package of documents to the authorized bank, including a certificate of available deposits. At the same time, in order to obtain a preferential loan, the borrower must not have funds placed on other deposits at a rate exceeding the preferential rate.^[16]

Provision of concessional loans to IT startups and compensation for 50% of IPO costs

On November 23, 2021, it became known about the plan developed by the Ministry of Economic Development to support technological startups within the framework of the strategic initiative approved by the Government of the Russian Federation.

According to Kommersant, the department has identified three main stages in the formation of a technology company:

• mass pre-selection of teams (from idea to first sales) and acceleration of young startups (a new business begins to generate revenue);
• the development of mature startups (companies with revenues of 50 million rubles);
• support for a stable business (companies with revenues of 500 million rubles).

At the first stage, assistance will be provided in the form of grants, competitions, entrepreneurs will also be able to undergo special training. The project will be curated by innovative development institutes: the Skolkovo Foundation, the Innovation Promotion Fund, the National Technology Initiative (NTI) Platform.

During the second stage, startups will be provided with preferential loans at the Central Bank rate. At the third stage of the support program, startups will receive subsidies of up to 50% to compensate for IPO costs, however, the revenue of companies should not exceed 800 million rubles.

It is assumed that the first startups will enter the IPO in 2023 - and by 2024 the number of such small and medium-sized companies will be at least thirty. The implementation of the entire strategic initiative will begin in 2022 and end in 2030.

The ministry notes that state support will be "seamless." That is, support measures will be provided at each stage of development through a single digital environment for the exchange of information about the company and its results between development institutions.^[17]

Ministry of Digital Development expands concessional lending for projects to implement domestic software

On September 24, 2021, it became known about the draft government decree prepared by the Ministry of Digital Development, Communications and Mass Media of the Russian Federation, which implies a significant expansion of state support for concessional lending to companies for projects of their digital transformation.

As Kommersant writes with reference to this document, the Ministry of Digital Development proposes to provide the Russian Information Technology Development Fund (RFRIT) with budget subsidies intended to support the selection of digital transformation projects for which Russian companies can receive bank loans at preferential rates.

RFRIT is also appointed by the operator of this program. The Fund will provide organizational, methodological and consulting support for the selection of projects, including documentation expertise, methodological support, analysis of information on the implementation of projects

It is about expanding the support measure introduced by the government back in 2019. It is intended for a business ready to implement domestic software and solutions created on the basis of "end-to-end" digital technologies. The lending program for companies and preferential factoring for developers allows you to take out a loan through authorized banks at a rate of 1 to 5% per annum - in the amount of up to 5 billion rubles. for one project and up to 10 billion rubles for "blocks" of several projects. Banks receive reimbursement for income lost due to low loan rates in the form of subsidies from the Ministry of Digital Development.

The department noted a strong demand for such loans, as well as their high budgetary efficiency, as a result of which it was decided to scale the program. In this regard, several tasks were set:

• to provide support to more than 250 projects by the end of 2024;
• increase the current loan portfolio by one and a half times - up to 150 billion rubles;
• include more than 50 banks in the program.^[18]

Ministry of Digital Development expands access to loans for business digitalization

On March 1, 2021, it became known about the plans of the Ministry of Digital Development of the Russian Federation to reduce from 25 million to 5 million rubles the minimum loan for digitalization using Russian software. This measure can increase the number of borrowers, including at the expense of medium-sized companies.

The fact that Ministry of Digital Development simplifies access to loans for digitalization, the press service of the department reported. Under the terms of the program, the borrower must direct at least 70% of the funds to the purchase and implementation of Russian digital solutions.

Due to the increase in co-financing by the ministry, the interest rate on the loan can be reduced if the company has an approved digital transformation strategy. For the convenience of companies, the requirements for application and reporting documentation have been simplified, and the mechanism for coordinating loans has been optimized, the Ministry of Digital Development said in a statement.

In the new version of the decree of the Government of the Russian Federation on the provision of preferential loans to companies for the introduction of Russian digital solutions, there is no requirement for the bank to have at least 20 billion rubles of its own funds. At the same time, to ensure reliability, the requirements for the bank's term of operation and credit rating are preserved. Financial organizations that provide only factoring services will be able to take advantage of the subsidy.

According to Deputy Head of the Ministry of Digital Development Maxim Parshin, the largest borrowers who have already used the program of concessional lending to Ministry of Digital Development also include MTS, the agro-industrial holding Komos Group, the electric power company T Plus, Russian Post and Russian Railways.

The Ministry of Digital Development expects that the updated draft resolution will enter into force in the spring of 2021. As a result, more companies will be able to take advantage of this support measure, the procedures for submitting and considering applications are being optimized, and the circle of authorized banks will expand, the department noted.^[19]

2020

The Ministry of Telecom and Mass Communications has compiled a list of banks for issuing preferential loans for digital business transformation

On August 20, 2020, the Ministry of Telecom and Mass Communications announced a list of banks for issuing preferential loans for digital business transformation. To participate in the program, the state development corporation ВЭБ.РФ was involved, as well as Gazprombank, Sberbank, Sovcombank and VTB.

They will receive a subsidy from the state to reimburse the costs of providing preferential loans for the implementation of digital transformation tasks, as well as preferential factoring for software developers.

IT companies that have planned a digital transformation can use the program to obtain loans at a preferential interest rate. Both companies with state participation and private ones can count on subsidies, and the main condition for obtaining a loan is that the funds should be used to introduce digital solutions. The loan rate under the program ranges from 1% to 5% with a total amount for the project of up to 5 billion rubles and up to 10 billion rubles for programs including several projects.

As the TASS Information Agency of Russia notes, the mechanism of concessional lending through authorized banks was developed by the Ministry of Telecom and Mass Communications and launched within the framework of the federal project "Digital Technologies" of the national program "Digital Economy." The project for state support of digital transformation programs for companies will last until 2024 inclusive.

State-owned companies are a significant part of the economy. Their digital transformation will be a great help for the development of domestic software. However, according to surveys conducted by the Ministry of Telecom and Mass Communications, by mid-2020, only 35% of state-owned companies are actively working on digital transformation. About 18% understand that without digital transformation it is impossible to create a truly competitive business. And almost 48% are only at the stage of realizing how important this work is.^[20]

Launch of the program of preferential loans for the digital transformation of companies from the Ministry of Communications

On August 11, 2020, it became known about the launch of the Ministry of Telecom and Mass Communications of the program of concessional lending to digital transformation projects of companies. The deputy head of the ministry Maxim Parshin spoke about him at a joint webinar with the Association of Russian Banks (ARB) on the issue of concessional lending.

According to him, on August 11, 2020, the ministry prepared draft directives obliging state-owned companies and companies with state participation to adopt digital transformation programs based on domestic IT solutions.

Along with the mandatory part, where we will directive state-owned companies to embark on the path of digitalization and do so in a coordinated and high pace, the government provides support measures that will stimulate and provide additional resources for the implementation of digital transformation programs. And one of the most important, and maybe the main tool is concessional lending, - said Maxim Parshin (quoted by the Prime agency).

According to him, from August 10, the ministry has already begun to accredit banks and sign agreements with them.

Recall that the decree itself with the rules for the implementation of the concessional lending program, the selection procedure and the powers of banks, was approved by the government on December 5, 2019. According to it, a preferential loan for digital transformation will be provided at a rate for the final borrower from 1 to 5% per annum. At the same time, the Ministry of Telecom and Mass Communications compensates banks for 90% of the key rate of the Bank of Russia (by August 11, 2020, it is 4.25% per annum).

On July 2, 2020, the government issued a new version of this decree.

We have simplified the procedure for selecting banks, considering applications as much as possible so that we can make appropriate decisions as quickly as possible and borrowers can receive appropriate loans as quickly and comfortably as possible, and banks can receive appropriate subsidies in the form of compensation, - said the Deputy Minister[21] and Mass[22].

As explained by TAdviser in the Ministry of Telecom and Mass Communications, the new version of the above resolution, unlike the original one, provides:

• Increased volume of maximum concessional lending - 5 billion rubles for the implementation of one project, instead of 3 billion rubles;
• Provision of concessional loans for the implementation of a group of projects up to 10 billion rubles;
• Increasing the term for providing concessional lending - from the end of 2022 to the end of 2024 - the time for the completion of the implementation of the Digital Economy national program;
• A new additional format for concessional lending is the so-called "factoring," which involves support directly from the product developer, and not from the company implementing it; such support is necessary for developers due to delays in payments - 2-3 months long.
• Expansion of supported industries - providing concessional lending to companies from an unlimited number of industries, and not only from those priorities that are indicated in the presidential decree issued in 2018;
• No obligatory co-financing of the project by the borrower in the amount of 20%;
• Simplified procedures for selecting banks - a decrease for banks in the level of credit rating BBB- (RU) and/or ruBBB-, the presence of which is mandatory, until usually practiced by other regulations;
•  Provision of concessional lending to subsidiaries of those banks that have already been provided with such support.

In addition, the resolution in the new version was drawn up in such a way that it saves the Ministry of Communications from the need to develop additional regulatory legal acts required to start selecting banks and implementing borrower projects. These acts, supplementing the initial version of the resolution and prescribing in more detail the conditions for providing preferential lending to projects and banks, had to go through the approval of the Ministry of Justice, which meant considerable time. Therefore, it was made so that the resolution in the new edition already includes the content of all these documents, - explained in the Ministry of Telecom and Mass Communications. 

The new version of the resolution was developed due to the new market situation due to the pandemic - due to the fact that industries, including IT, suffered and, as a result, they need affordable and fast state support, - explained TAdviser in the Ministry of Communications.

It is noteworthy that the Ministry of Communications is ready for further changes to the decree. According to Maxim Parshin, the ministry is ready to adjust the criteria in the event of high interest in the program from credit institutions.

The Ministry of Communications drew the attention of the IT industry to changes in the mechanism of preferential lending to buyers of domestic IT products

In early August 2020, the deputy head of the Ministry of Telecom and Mass Communications Maxim Parshin sent letters to the associations APKIT, Russoft, Domestic Software, Opora Rossii, Delovaya Rossiya, CCI and RSPP, in which he drew attention to some of the changes in the mechanism for preferential lending to buyers of domestic IT products.

In his letters, the deputy minister noted that, in accordance with the new version of the resolution, the maximum amount of a preferential loan for one project is 5 billion rubles, for a comprehensive program (set of projects) - 10 billion rubles at a preferential rate of 1% to 5% per annum. At the same time, subsidies for such loans will be carried out until the end of the implementation of the national program "Digital Economy" - the end of 2024, and not, as expected by the original version of the decree, until the end of 2022.

In this regard, taking into account the need of companies for affordable financial resources for the implementation of digital transformation measures identified by the Ministry of Telecom and Mass Communications, as well as taking into account the tight deadlines for the implementation of this resolution and limited funding limits this year, I ask you to organize the communication of information about the new mechanism of state support to companies participating in associations of relevant industries, - Maxim Parshin said in his letters.

IT companies of Udmurtia will be reimbursed up to 3 million rubles for credit and factoring costs

On June 30, 2020, it became known that subsidies of up to 3 million are rubles planned to be provided to companies in the informatization industry communications Udmurtia for expenses related to the payment of interest under the to credit agreement or the payment of a commission under the factoring agreement. The corresponding measures of state support information technology Governments of the Udmurt Republic for the industry are enshrined in Decree No. 269 of June 23, 2020. In total, 31.4 million rubles were allocated for these support measures.

Enterprises in the information and communication technology industry are characterized by the specifics of postponing payments from customers and working under the strict conditions of a large business to pay for completed orders within one to three months after the actual signing of closing documents. At the end of 2020, contracts are paid by customers with long delays reaching six months, which negatively affects the development of the industry.

The proposed measure will make it possible to return funds to circulation for timely payment of wages, reduce the entrance threshold for working with large customers, increase the percentage of SMEs concluding contracts with large businesses and will reduce the overhead costs of maintaining legal services engaged in collecting payments through claims and claims activities.

The adopted support measure will allow companies in the informatization and communications industry of Udmurtia to increase their financial stability, ensure uninterrupted operation and fulfillment of orders from customers whose corporate rules imply a delay in payments. We plan that this measure will help in the context of an unstable financial and economic situation to maintain the annual growth of the IT industry and preserve the number of employees of organizations, which will ensure the planned income of personal income tax to the budget of the republic, - said Timur Medzhitov, Minister of Informatization and Communications of the Udmurt Republic.

The source recalled that as of June 2020, a set of measures to support the IT industry is already being implemented in the republic, for example, there is a preferential tax rate of 5% for organizations and individual entrepreneurs in the IT sector who have chosen income reduced by the amount of expenses as an object of taxation, when applying a simplified taxation system. This measure began to operate in 2018 and has already shown the result: the number of small business organizations increased by 39%, tax revenues of organizations in the budget system of the Russian Federation by 13%, including revenues to the consolidated budget of the Udmurt Republic - by 17%.

Much attention is paid to support measures related to the training of employees of IT companies. For example, in 2020, the implementation of an acceleration program began, which turned out to be in demand among IT companies. In early June 2020, the 4th stream of the Made in Udmurtia export accelerator ended. The accelerator was attended by 10 IT companies. There are already concluded contracts with foreign companies.

Among the measures for Udmurtia are an IT mortgage and an IT pass, which are aimed at creating comfortable conditions for IT specialists, attracting qualified IT personnel from other territories.

Every year in Udmurtia, events are held aimed at attracting personnel to the IT industry: "Career Night in IT," the summer forum "ITSummerCamp," the republican festival "World of Professions in IT," educational conferences. In 2019, about three thousand participants attended the events. To train future IT industry specialists, the IT Vector program is operating in the republic, formations aimed at increasing knowledge of specialized subjects at different levels of study. School-SPO-UNIVERSITY. The program corresponds to the tasks of the national project "," Digital economy of Russia initiated by the "May" decree of the President. of the Russian Federation Vladimir Putin As of June 2020, 45 urban and rural schools of the republic are participating in the project, uniting more than 3 thousand schoolchildren in 150 IT classes.

In addition to regional support measures, the Ministry of Informatization and Communications of the Udmurt Republic assists IT companies in the region in obtaining state support measures as part of the implementation of the national project "Digital Economy," initiated by the "May" decree of the President of the Russian Federation Vladimir Putin. So, in 2019, republican companies attracted more than 100 million rubles from federal funds.

Recall that earlier the President of the Russian Federation Vladimir Putin proposed for IT companies against the background of a pandemic to reduce the rate of insurance premiums for the industry to 7.6% from 14%, the income tax rate - to 3% from 20%.

2018: Ministry of Telecom and Mass Communications offered soft loans for IT companies

In mid-November 2018, the Ministry of Telecom and Mass Communications proposed to provide preferential loans to Russian IT companies, in which part of the interest rate would be assumed by the state. This measure was announced at a meeting in which representatives of the department, IT industry and banks participated.

As Vedomosti writes with reference to the accompanying materials for this meeting,  12.5 billion rubles from the federal budget in 2019-2021 are pledged for the proposed subsidies to Vnesheconombank (VEB) and other banks. Of these, 1.7 billion rubles can be received in 2019, 3.7 billion rubles - in 2020, 7.1 billion rubles - in 2021. This is money planned under the Digital Economy program, the newspaper notes.

Criteria for the selection of banks and companies that can take part in the concessional lending system have yet to be developed. The presence of domestic software in the register is considered as one of the main criteria for AI companies. In addition, the IT product must be associated with the national project and developed as much as possible.

According to the managing director of Rosplatforma Vladimir Rubanov, the preferential rate will stimulate the development of Russian software, but there is a problem of collateral on loans with which IT companies have difficulties.

The assets of software developers are intellectual property and competencies of employees, so it is more difficult for them to submit loan collateral, says Vyacheslav Zharavin, partner of the investment and capital markets department at KPMG. He notes that in addition to co-financing amounts, directions are also important, because in a diverse IT market there are projects that need small resources, but if successful, they can affect entire sectors of the economy.

Dmitry Komissarov, head of New Cloud Technologies, notes that banks fear that they will not have enough technological expertise, and the state will not be able to assess financial risks^[23]

Notes