The financing mechanism for young businesses has been updated. Funds are planned to be allocated up to 1 billion UZS for book cafes and up to 5 billion UZS for startup centers.
According to the Cabinet of Ministers' decision No. 598 dated October 30, the rules for issuing loans to support young entrepreneurs, finance startup projects, and develop businesses have been adjusted in Uzbekistan.
These changes are approved in the new edition by the State Target Capital Fund for Entrepreneurship Development under the Youth Affairs Agency, utilizing the funds of this fund.
It is expected that loans for young entrepreneurs will be provided for a term of up to 7 years at an interest rate 4 percentage points higher than the Central Bank's main rate. A preferential period is also provided: up to 2 years on the principal debt and up to 3 months on interest payments.
Business entities that sell more than 10 thousand books per month will be allocated up to 1 billion UZS to expand the activities of a bookstore or 'Book cafe'. These funds are provided for a term of up to 3 years with a 6-month grace period on the interest rate, which equals half of the Central Bank's main rate.
Furthermore, up to 500 million UZS is planned to be allocated for starting trade and providing services in mobile stalls in each district or city. These funds will also be available for up to 3 years with a 6-month grace period.
For creating educational and professional workshops-laboratories in technical colleges and non-state educational institutions, a zero-interest loan equivalent to 1200 basic calculation units is provided. The repayment period for such a loan is up to 3 years, and the grace period is 6 months.
A zero-interest loan of up to 5 billion UZS has been established for organizing startup studios, incubators, and accelerator centers. These funds will be issued for a term of up to 5 years with a one-year grace period.
In addition, coverage of up to 50% of expenses for participation in international acceleration programs is possible, but not more than 20 thousand dollars. Financial assistance of up to 50% of the costs for developing and testing the initial prototype of promising startups is also being considered, with a maximum amount of 50 thousand dollars.
Within the framework of the decision, zero-interest lending equivalent to 320 basic calculation units is also provided for organizing foreign language learning services in remote and peripheral areas. A list of 370 such areas is presented in the document appendix. Funds will be directed to projects that meet the established requirements and are selected according to the regulations.
