Innovative small and medium-sized startups receive interest rate support from the state budget when borrowing capital according to what principles?

In what principles do creative small and medium-sized startups receive interest rate support from the state budget when borrowing capital?

According to the provisions of Article 26 Decree 80/2021/ND-CP In each period, creative small and medium-sized startups receive interest rate support from the state budget when borrowing medium and long-term capital from credit institutions to implement production and business plans and projects according to the following principles:

(1) Are small and medium-sized enterprises that meet the criteria for innovative startups specified in Article 20 of Decree 80/2021/ND-CP,

At the same time, they have not enjoyed preferential interest rate policies from the State during the same period.

(2) The state budget supports interest rates for businesses in the form of post-investment support.

Each business receives interest rate support for 01 production and business plan or project in the same period.

(3) Enterprises that borrow capital are evaluated by credit institutions and decide to lend according to the provisions of law on lending by credit institutions.

What are the responsibilities of small and medium-sized startups receiving interest rate support?

The responsibilities of small and medium-sized enterprises receiving interest rate support are specified in Clause 3, Article 27 of Decree 80/2021/ND-CP as follows:

Content of interest support capacity

1. In each period, the interest rate difference subsidized by the state budget for loans from innovative small and medium-sized startups, small and medium-sized enterprises participating in industry clusters and value chains through credit institutions is 2%/year.

2. Credit institutions provide loans with interest rate support for small and medium-sized enterprises with creative startups, small and medium-sized enterprises participating in industry clusters and value chains within the scope of state budget estimates; Make advances, payments, and settlements according to the provisions of law and instructions of competent state agencies.

3. Small and medium-sized enterprises eligible for interest rate support are responsible before the law for the accuracy of the information provided related to production and business plans and projects subject to interest rate support; Refund the interest rate support amount when violating regulations on interest rate support and lending laws of credit institutions.

Thus, according to regulations, innovative small and medium-sized startups that enjoy interest rate support must be responsible before the law for the accuracy of the information provided related to production and business plans and projects subject to interest rate support;

At the same time, refund the interest rate support amount when violating regulations on interest rate support and lending laws of credit institutions.

How are creative small and medium-sized startups supported with in-depth training and coaching?

The content of supporting innovative small and medium-sized enterprises is specified in Clause 5, Article 22 of Decree 80/2021/ND-CP as follows:

Content to support creative small and medium-sized businesses

…

4. Technology support

Maximum support of 50% of the value of consulting contracts to search, select, decode and transfer technology suitable for businesses but not exceeding 100 million VND/contract/year/business.

5. In-depth training and coaching support

a) Support up to 50% of the cost of participating in domestic intensive training courses for enterprise students on construction and product development; product commercialization; e-commerce development; call for investment capital; market development; connecting startup networks with organizations and individuals doing scientific research but not exceeding 5 million VND/student/year and not exceeding 03 students/enterprise/year;

b) Support up to 50% of the cost of participating in short-term intensive training courses abroad but not exceeding 50 million VND/student/year and not exceeding 02 students/enterprise/year.

6. Support for information, communication, trade promotion, and connecting creative startup networks

a) Free search for information about the system of domestic and international standards and regulations; inventions, technological information, scientific research results; information connecting creative start-up networks, attracting investment from creative start-up investment funds at the Information Portal and electronic information pages of ministries, ministerial-level agencies, Government agencies, and Provincial People’s Committees;

…

Thus, according to regulations, innovative small and medium-sized startups are supported with in-depth training and coaching costs, specifically:

(1) Support up to 50% of the cost of participating in domestic intensive training courses for corporate students on:

– Construction and product development;

– Commercialization of products;

– Developing e-commerce;

– Call for investment capital;

– Market development;

– Connect startup networks with scientific research organizations and individuals.

Note: The support level is not more than 5 million VND/student/year and not more than 03 students/enterprise/year;

(2) Support up to 50% of the cost of participating in short-term intensive training courses abroad but not exceeding 50 million VND/student/year and not exceeding 02 students/enterprise/year.