Changes have been made to the state program of “Produce in Georgia” that will benefit local event companies and farmers, Economy Minister Natia Turnava has announced.
Following the changes, event companies will also be involved in a credit guarantee mechanism that will enable them to get subsidized bank loans for 12 months.
Turnava said this would help companies solve problems created by the coronavirus crisis.
As for the second change, farmers who are engaged in growing grapes, citrus and other tropical fruit varieties will also be included in the credit-guarantee program of “Produce in Georgia”.
Enterprise Georgia agency, which runs the “Produce in Georgia” state program, says that the credit-guarantee mechanism aims to improve access to finance for small and medium size businesses, facilitate lending and ensure inclusive economic growth.
The terms of the mechanism are:
– It will be based on portfolio guarantees and the loan will be evaluated by the commercial bank/microfinance organization.
– A security provided by the agency for up to 90% of the principal amount for each loan disbursed by commercial banks within the framework of the program. Guarantee shall be issued for each bank participating in the program for up to 35% of the disbursed loan portfolio within this program, at any moment.
– In the case of a commercial bank minimum loan volume is 50,000 GEL, while maximum loan volume is 5 million GEL.
– In the case of a microfinance organization minimum loan volume is 20,000 GEL, while maximum loan volume is 5 million GEL.
– The maximum loan warranty period is 10 years.
In August, Enterprise Georgia announced that “Produce in Georgia” would support six new economic activities to tackle the economic challenges caused by Covid-19. These activities are: creation of computer games, hospital activities, general medical practice activities, specialized medical practice activities, dental practice activities, purchase and leasing of film production equipment. (Agenda/Business World Magazine)