Legislation amendments

Amendments to the Federal Law No. 209-FZ «On development of small and medium entrepreneurship in the Russian Federation» concerning the establishment of the National warranty system of support of small and medium entrepreneurship (National warranty system) were made by the Federal Law No. 83-FZ of 01.04.2020.

According to the Law, the National warranty system is the system of the interacting organizations performing activities for the purpose of the ensuring access of subjects of small and medium entrepreneurship to credit and other financial resources.

Among the participants of the system are: Federal Corporation for the Development of Small and Medium Enterprises (RSMB Corporation), JSC Russian Bank for Small and Medium Enterprises Support and also funds of assistance to crediting, funds of warranties and guarantee funds conforming to requirements to the regional warranty organizations and their activities established by the Article 15.2. of the Federal Law No. 209-FZ of 24.07.2007.

Once a year RSMB Corporation assigns a rank reflecting the measure of financial stability and operational efficiency of the regional guarantee organizations. In the future, the financial support for the regional guarantee organizations will depend on the assigned rank.

RSMB Corporation is responsible for coordinating the activities of the National warranty system participants on providing warranties or independent guarantees.

In general, the amendments to the Law have come into force. The regulations on ranking of regional guarantee organizations will come into force on January 1, 2021.

According to the RSMB Corporation, currently, there are 83 regional guarantee organizations.

The list of legal entities and entrepreneurs which received the government support is available in the list «Grant recipients» of the Information and Analytical system Глобас. The list contains more than 91 thousand of records.

Measures of support for systemically important enterprises

The company’s selection rules for inclusion in the industry systematic lists and measures of support during the economic crisis were defined by the Decree of the Government of the Russian Federation No 651 from 10.05.2020.

According to the Decree, the support is provided in the following ways:

  • cost recovery subsidies, as well as the subsidies for reimbursement of part of the costs due to production and sale of goods, carrying-out of work or provision of services;
  • deferrals of tax and advance tax payment;
  • government guarantees on loans or bonded debts which are raised by companies to solve urgent tasks to ensure the sustainability of economic development;

The systemically important enterprises will be able to count on one or more support measures in case the conditions below are met jointly:

  • the company is not a foreign legal entity or a Russian legal entity with direct or indirect share of foreign participation exceeding 50%. The decision not to apply this rule to the organization can be taken by the Government Commission on stability improvement of the Russian economy;
  • analysis of company’s financial and economic activities and assessment of its financial stability, i.e. a stress-test;
  • the company may have arrears on taxes, fees and other mandatory payments not exceeding 10,000 RUB in total, it should also not have overdue arrears on return of subsidies to the Federal budget or budget investments provided in accordance with other regulatory legal acts on the date of filing the application for support.

To get the support, it is necessary to send the application to the industry authority and the Ministry of Economic Development of the Russian Federation with the attached list of documents.

The Decree also defined the procedure for application processing and decision making procedure on providing support.

The Ministry of Economic Development of the Russian Federation is responsible for the maintaining of the Register of systemically important enterprises, which includes companies with support provided by the Government Commission on stability improvement of the Russian economy.

The Register should contain the data on systemically important enterprises, forms, volumes, terms and conditions for providing support, as well as details of the adopted decisions.

They are available in «Lists we recommend» of the Information and Analytical system Globas.