The Government has recently issued Decree No. 45/2024/ND-CP amending and supplementing certain provisions of Decree No. 39/2019/ND-CP dated May 10, 2019, on the organization and operation of the Small and Medium Enterprise Development Fund (SME Fund).
Regarding the principles for direct lending by the SME Fund, Article 15 of Decree No. 39/2019/ND-CP stipulates:
1. The lending activities of the Fund are conducted under agreements between the Fund and small and medium-sized enterprises, in accordance with the provisions of this Decree.
2. Small and medium enterprises borrowing capital from the Fund must ensure the proper use of the borrowed capital, fully repay the principal and interest on the loan according to the terms agreed with the Fund.
3. The currency for lending and repayment is VND.
In addition to the above three principles, Decree No. 45/2024/ND-CP adds the following principle: Enterprises that have borrowed capital from the Fund may be considered for further borrowing for new projects or business plans from the Fund's capital if the enterprises have fully repaid the principal and interest on the loan according to the agreed terms.
This principle aims to limit one enterprise from borrowing capital for multiple projects or business plans during the same period. Moreover, after the enterprise has fully repaid the loan, it will have a sufficient basis for evaluating the results, effectiveness, capabilities, and genuine needs for further support.
Amendment and Supplement of Loan Conditions
Furthermore, Decree No. 45/2024/ND-CP also amends and supplements Articles 16(1), 16(2), and 16(3) regarding loan conditions. Accordingly:
1. Small and medium enterprises engaged in innovative startups may borrow capital from the Fund when they meet the following conditions:
a) Meeting the criteria for innovative startups as prescribed in the Law on Support for Small and Medium Enterprises and guiding documents;
b) Having feasible projects, business plans, and ensuring compliance with the criteria for innovative startups.
c) Ensuring that the owner's capital participates in the project, business plan, with a minimum of 20% of the total investment capital to implement the project, business plan, and ensuring sufficient capital to carry out the project, business plan;
d) Meeting the regulations on loan collateral as prescribed in this Decree.
2. Small and medium enterprises participating in industry clusters may borrow capital from the Fund when they meet the following conditions:
a) Participating in industry clusters as prescribed in the Law on Support for Small and Medium Enterprises and guiding documents;
b) Having feasible projects, business plans within the industry, sector of the industry cluster;
c) Meeting the requirements at points c and d, Clause 1 of this Article.
3. Small and medium enterprises participating in value chains may borrow capital from the Fund when they meet the following conditions:
a) Participating in value chains as prescribed in the Law on Support for Small and Medium Enterprises and guiding documents;
b) Having feasible projects, business plans, and having products in the value chain;
c) Meeting the requirements at points c and d, Clause 1 of this Article.
Source: chinhphu.vn
