The Economy Committee of the Vitebsk Regional Executive Committee announces a competition for investment projects of business entities in the Vitebsk region to provide state financial support in the form of:

          subsidies to reimburse part of the interest on bank loans;

           subsidies to reimburse part of the expenses for paying leasing fees under financial lease (leasing) agreements in terms of paying the lessor's remuneration (income).

 

Reference:

The business entities of the Vitebsk region eligible for state financial support include:

small business entities of the Vitebsk region;

medium business entities of the Orsha district.

 

 

Organization and Conduct of the Competition

 

The organization and conduct of the competition is carried out by the Economy Committee of the Vitebsk Regional Executive Committee.

 

Legal Basis for the Competition

 

The competition is conducted in accordance with the procedure and conditions defined by:

Decree of the President of the Republic of Belarus No. 255 of May 21, 2009 "On Certain Measures of State Support for Small Businesses";

by the decision of the Vitebsk Regional Council of Deputies of July 30, 2009, No. 169 "On Approval of the Instruction on State Financial Support to Small and Medium-sized Businesses and Small Business Infrastructure Entities of Vitebsk Region";

by the decision of the Vitebsk Regional Executive Committee of May 20, 2010, No. 338 "On Approval of the Instruction on the Procedure for Conducting a Competition of Investment Projects of Small Business Entities of Vitebsk Region";

by Decree of the President of the Republic of Belarus of December 31, 2018, No. 506 "On the Development of Orsha District of Vitebsk Region".

 

 

Competition period

 

The competition will be held from May 16, 2022, to June 13, 2022, inclusive.

Competition applications submitted after the deadline will not be accepted for consideration and will be returned to the applicants.

 

Acceptance of documents

 

Documents for participation in the competition are accepted by the Economy Committee of the Vitebsk Regional Executive Committee (Vitebsk, Gogol St., 6, office 302) on working days from 8:00 to 17:00, lunch break from 13:00 to 14:00.

 

Contact persons

Trofimov Alexander Ivanovich, tel. 8(0212) 22 63 12

Cherednik Svetlana Viktorovna, tel. 8(0212) 22 63 16

 

Subject of competitive selection

 

provision of subsidies to reimburse a portion of interest on bank loans;

provision of subsidies to reimburse leasing payment expenses under financial lease (leasing) agreements, specifically for the lessor's remuneration (income) amount.

 

Source of Funding

 

Regional budget funds allocated for 2022 under the State Program "Small and Medium-sized Entrepreneurship" for 2021 – 2025

 

Directions for Providing State Financial Support

 

State financial support is provided to entrepreneurial entities in the Vitebsk region on a competitive basis when implementing investment projects in the following priority areas:

creation, development, and expansion of goods (works, services) production;

organization, development of production, sale of export-oriented, import-substituting products;

production of energy- and resource-saving products;

implementation of new technologies.

 

 

 

Purposes for which State Financial Support Funds may be directed

 

State financial support is provided to entrepreneurial entities registered in the Vitebsk region, implementing investment projects, for the purposes of:

construction;

acquisition of capital buildings (structures), isolated premises and (or) their repair and reconstruction;

acquisition of equipment, vehicles, special devices and adaptations;

purchase of components, raw materials and supplies for own production and provision of services.

 

Mandatory conditions for the provision of state financial support

 

A mandatory condition for the provision of state financial support on a competitive basis is the creation of new jobs.

 

Criteria for selecting investment projects during the competition

 

The main criteria for selecting investment projects during the competition are:

 compliance of the investment project with the priority areas for the provision of state financial support;

 relevance and prospects of the investment project, its final result;

 planned attraction of funds for the implementation of the investment project from other sources;

 estimated number of new jobs and the justification for their creation.

 

Requirements for competition participants

 

Applicants are not allowed to participate in the competition if:

the average number of their employees for the calendar year on the date of application for state financial support exceeds 100 people (for Orsha district – 250 people);

For reference: The average number of employees of small (and medium-sized for Orsha District) businesses - legal entities for a calendar year is determined in the established manner as: the average annual headcount (excluding employees on maternity leave, leave due to adoption (fostering) of a child under three months of age, or childcare leave until the child reaches three years of age); the average number of employees working part-time with their primary employer elsewhere; the average number of individuals performing work under civil law contracts (including those concluded with legal entities, if the subject of the contract is the provision or hiring of employees).

This number of employees is determined for the legal entity as a whole, including its branches, representative offices, and other separate divisions.

the volume of revenue from the sale of goods (performance of work, provision of services) excluding value-added tax for the calendar year exceeds the value established by the Council of Ministers of the Republic of Belarus in agreement with the President of the Republic of Belarus;

For reference: in accordance with Resolution of the Council of Ministers of the Republic of Belarus No. 142 of March 17, 2022, the maximum revenue values from the sale of goods (performance of work, provision of services) excluding value-added tax for 2021 for entities applying for state financial support in 2022 are:

individual entrepreneurs – 456 thousand rubles;

micro-organizations – 3336 thousand rubles;

small organizations – 12,587 thousand rubles;

medium-sized businesses of Orsha District, Vitebsk Region – 24,399 thousand rubles.  

in whose authorized capital the share of the Republic of Belarus, its administrative-territorial units, foreign legal entities, foreign citizens and stateless persons, public associations (with the exception of public associations of disabled persons), unions (associations), foundations, one or more legal entities that are not small businesses, exceeds 49 percent (with the exception of small and medium-sized business support infrastructure entities);

who are banks, non-bank credit and financial organizations, insurance organizations, professional participants in the securities market, pawnshops;

who are parties to concession agreements (production sharing agreements) concluded with foreign investors in the manner determined by the legislation of the Republic of Belarus;        

engaged in gambling, lottery activities, electronic interactive games, production and sale of excisable goods, mining, with the exception of common minerals;

undergoing reorganization, liquidation (termination of activity), economic insolvency (bankruptcy);

who have not submitted the documents required for making a decision on providing state financial support, or if the submitted documents contain inaccurate information;

for whom three years have not passed since the date of violation of the conditions for providing state financial support;

who have arrears in payments to the budget and state extra-budgetary funds;

who have losses based on the actual working time in the current year as of the date of application for state financial support.

 

List of documents to be submitted for participation in the competition

 

To participate in the competition, business entities submit the following documents to the economy committee of the regional executive committee:

an application for participation in the competition indicating the requested type and amount of state support, as well as the estimated number of new jobs;

a copy of the certificate of state registration of a legal entity, the charter of a legal entity (constituent agreement – for legal entities operating on the basis of a constituent agreement), the certificate of state registration of an individual entrepreneur;

information on the average number of employees (for legal entities) certified by the signature of the head and the seal of the legal entity;

information on the volume of revenue from the sale of goods (performance of work, provision of services) excluding value added tax for the calendar year preceding the year of application, certified by signature

head and seal of the legal entity or signature of the individual entrepreneur and seal, if any;

feasibility study (including financial) of the investment project;

balance sheet and its appendices for the previous year, as well as for the actual working time in the current year (for individual entrepreneurs – a certificate from the tax authority on income received in the past year, as well as for the actual working time in the current year; for small businesses applying a simplified taxation system – a tax declaration for the previous year, as well as for the actual working time in the current year);

 

To receive state financial support in the form of reimbursement of a part of interest for using a bank loan, business entities additionally submit:

 

a copy of the loan agreement;

an extract from the loan account;

a schedule for repayment of the loan and payment of interest thereon;

copies of payment orders confirming the targeted use of the loan;

copies of payment orders confirming the payment of accrued interest on the loan;

calculation of the subsidy amount for interest payment on the loan, made by the bank.

 

To receive financial support in the form of reimbursement of a part of expenses for payment of leasing payments under financial lease (leasing) agreements in terms of paying the lessor's remuneration (income) amount, business entities additionally submit:

 

 a copy of the financial lease (leasing) agreement;

 copies of documents confirming the transfer of the leased object to the business entity;

 calculation of the subsidy amount for payment of the lessor's remuneration (income) amount, madelessor;

 copies of documents confirming payment of the remuneration (income) amount to the lessor.

 

Amount of State Financial Support

 

Reimbursement of a portion of interest for the use of bank loans to business entities is made within the terms of the loan agreements.

Reimbursement of a portion of interest for the use of bank loans obtained:

in Belarusian rubles, is carried out in an amount not exceeding 0.5 of the refinancing rate of the National Bank of the Republic of Belarus, established on the date of reimbursement of a portion of interest;

in foreign currency – in an amount not exceeding 0.5 of the loan rate.

Reimbursement is made in Belarusian rubles at the official exchange rate of the National Bank of the Republic of Belarus on the date of the decision to reimburse a portion of interest.

 

Reimbursement of a portion of expenses for the payment of lease payments under a financial lease (leasing) agreement in terms of paying the lessor's remuneration (income) amount is made to the business entity within the term of the financial lease (leasing) agreement in an amount not exceeding 0.5 of the lessor's remuneration (income) amount.

In case of acquisition of leased assets in foreign currency, reimbursement of a portion of expenses for the payment of lease payments is made in Belarusian rubles at the official exchange rate of the National Bank of the Republic of Belarus on the date of the decision to reimburse a portion of expenses for these payments.

Procedure for making decisions on granting state financial support                                                                                                         

 

The Economy Committee of the Vitebsk Regional Executive Committee ensures the selection of investment projects for the provision of state financial support.

Based on the documents submitted by the competition participantsдокументов committee of economy of the regional executive committee within 15 calendar days from the date of expiration of the application period verifies their compliance with the requirements and submits to the regional executive committee a draft decision on granting state financial support to applicants or refusing such support.

Applicants are notified in writing of the decision made by the committee of economy of the regional executive committee within 3 calendar days.