National Entrepreneurship Development Project for 2021-2025

Name

National Entrepreneurship Development Project for 2021-2025

The project’s tasks

- to ensure structural changes in entrepreneurship;
- to help develop small businesses to increase employment-to-population ratio;
- to diversify sectors of the economy;
- to increase market competition and ensure equal conditions for businesses.

Implementation period

2021 – 2025

Expected economic effect (quantitative data)

1.    The share of small and medium-sized businesses in GDP will reach 35%.

2.    The contribution of tourism to GDP will increase up to 8.4 trillion tenge.

3.    The state's share in the economy will be reduced to 14%.

4.    995.3 thousand jobs will be created, including:
- 335.1 thousand permanent jobs,
- 660.2 thousand temporary jobs.

Expected social effect (quantitative and qualitative data)

1.7 million people will get permanent jobs;
2. 3.5 million people will be assisted in finding a job;
3. The number of people living in rural areas and having income below the subsistence minimum will be decreased by 6.5%.

The amount of money required for the project implementation

8,455,329,919 thousand tenge (including the republican budget – 1,030,884,427 thousand tenge, local budgets – 124,695,492.0 thousand tenge, extra-budgetary money – 7,299,750,000 thousand tenge):
In 2021 – 1,272,207,923.3 thousand tenge;
In 2022 – 1,370,367,038.7 thousand tenge;
In 2023 – 1,620,056,904.0 thousand tenge;
In 2024 – 1,963,862,120.0 thousand tenge;
In 2025 – 2,228,835,933.0 thousand tenge;
Total – 8 455 329 919 thousand tenge.

Any sector of the economy, except pawn shops, microfinance and factoring organizations, leasing companies, and trade companies (except food trade companies) – loans issued by second-tier banks

Priority sectors of the economy – loans issued by microfinance organizations

The base rate of the National Bank of Kazakhstan +7%, 15.75% of which is subsidized by the state, leaving the entrepreneur responsible for the remaining balance.

For projects implemented in small and single-industry towns, as well as rural settlements – the base rate of the National Bank of Kazakhstan +7%, 16.75% of which is subsidized by the state, and the entrepreneur is responsible for covering the difference.

Loans issued to social entrepreneurship entities are guaranteed and subsidized by the state, without industry restrictions, with the exception of pawnshops, microfinance, factoring organizations, and leasing companies. These entities are charged a nominal remuneration rate that is equivalent to the National Bank's base rate +7%, and the state subsidizes 16.75% of this rate, leaving the entrepreneur responsible for the remaining balance.

1. 3 years for investment purposes (the subsidizing period cannot be prolonged);

2. 2 years for working capital replenishment (the subsidizing period cannot be prolonged)

Entrepreneurs and subjects of industrial and innovative activity who are implementing or planning to implement effective projects.

Entrepreneurs and subjects of industrial and innovative activity who are implementing or planning to implement green projects.

However, the program does not apply to the following:

1. Projects that fall under the types of activities specified in paragraph 4 of Article 24 of the Code and which have arisen since April 20, 2020.

2. Pawnshops, microfinance, factoring organizations, and leasing companies.

Projects in regional centers are implemented in priority sectors of the economy, according to the List of Priority Sectors of the Economy.

Entrepreneurs who are implementing projects in small and single-industry towns, as well as rural settlements, are eligible for support under this program, without any sectoral restrictions. The support provided takes into account the location of the project implementation and the entrepreneur's place of registration. In addition, for projects located in small and single-industry towns, as well as rural settlements, it is possible to subsidize the interest rate on loans that are intended to replenish working capital in the field of trading activities. The amount of this subsidy is capped at 100 million tenge per entrepreneur.

Entrepreneurs and subjects of industrial and innovative activities who are implementing or planning to implement green projects are eligible for support under this program. To qualify for this support, the project must adhere to the classification of green projects, which has been developed by the authorized body in the field of environmental protection and approved by the Decree of the Government of the Republic of Kazakhstan.

Entrepreneurs operating in manufacturing industries listed in Appendix 1-1 to the Subsidizing Rules, and implementing projects in Turkistan, Mangystau, Atyrau, Aktobe, West Kazakhstan, Kyzylorda, Zhambyl regions or the city of Shymkent are eligible for the program.

The maximum loan must not exceed 3 billion tenge for one entrepreneur. If a loan is provided to several affiliated entrepreneurs for the implementation of one business project, then this loan cannot exceed 3 billion tenge.

The loan or financial leasing agreement cannot exceed 1.5 billion tenge for one entrepreneur (taking into account all existing loans and leasing transactions for projects in small and single-industry towns, rural settlements, with the exception of regional centers).

For entrepreneurs implementing projects in small and single-industry towns and rural settlements, within the priority sectors of the economy listed in Appendix 1 to the Subsidizing Rules, the loan or financial leasing agreement must not exceed 3 billion tenge.

The base rate of the National Bank of Kazakhstan + 5%, 13.75% of which is subsidized by the state, and the remaining balance is paid by the entrepreneur.

For projects implemented in small and single-industry towns, and rural settlements, with the exception of regional centers, the base rate of the National Bank of Kazakhstan + 5%, of which 14.75% is subsidized by the state, and the entrepreneur pays the remaining balance.

Nominal interest rate for social entrepreneurship entities – base rate of the National Bank of Kazakhstan + 5%, 14.75% of which is subsidized by the state, and the rest is paid by the entrepreneur.

Nominal interest rate for entrepreneurs operating in manufacturing industries listed in Appendix 1-1 to the Subsidizing Rules, and implementing projects in Turkistan, Mangystau, Atyrau, Aktobe, West Kazakhstan, Kyzylorda, Zhambyl regions or the city of Shymkent – base rate of the National Bank of Kazakhstan + 5%, 14.75% of which is subsidized by the state, and the rest is paid by the entrepreneur.

Subsidizing under the Regional Program is available in socially vulnerable regions, during the state of emergency, or in other cases according to written agreement between a local executive body and an authorized body responsible for entrepreneurship.

The terms of subsidizing in socially vulnerable regions or during the state of emergency are agreed in writing by a local executive body and an authorized body responsible for entrepreneurship

The subsidized loan cannot exceed 500 million tenge for one small or medium-sized business. The subsidized loan amount is specified in a written agreement between a financial institution and a local executive body. The loan amount is calculated without taking into account other loans of an entrepreneur’s affiliates.

The maximum funding limit for a microfinance organization per one small or medium-sized business cannot exceed 8,000 MCI.

5 years for loans and microloans.

3 years for working capital replenishment (the subsidizing period cannot be prolonged).

Program Participants

Micro- and small businesses

Economy Sector

Any sector of the economy, except pawn shops, microfinance and factoring organizations, leasing companies, and trade companies (except food trade companies) – loans issued by second-tier banks

Priority sectors of the economy – loans issued by microfinance organizations

Maximum Loan Amount 

For investment purposes – maximum 20 million tenge

For replenishment of working capital – maximum 5 million tenge

Guarantee Amount    

Up to 85% of the loan amount

Renumeration Rate

Loans issued to social entrepreneurship entities are guaranteed and subsidized by the state, without industry restrictions, with the exception of pawnshops, microfinance, factoring organizations, and leasing companies. These entities are charged a nominal remuneration rate that is equivalent to the National Bank's base rate +7%

Guarantee Term

Must not exceed the loan term 

Program Participants

Individual entrepreneurs and legal entities included in the register of social entrepreneurship entities

Loan Purpose

Investments and replenishment of working capital

Economy Sector

Any economy sector

Maximum Loan Amount 

For investment purposes – maximum 20 million tenge

For replenishment of working capital – maximum 5 million tenge

Renumeration Rate

Base rate of the National Bank of Kazakhstan +7%

Guarantee Amount       

Up to 85% of the loan amount

Guarantee Term

Must not exceed the loan term

Fees and Charges

None

GUARANTEES for novice entrepreneurs

GUARANTEES for experienced entrepreneurs

Up to 85 % of the loan amount

85 % of the loan amount – 360 million tenge

70 % of the loan amount – 600 million tenge

50 % of the loan amount – 1 billion tenge;

For entrepreneurs operating in manufacturing industries listed in Appendix 1-1 to the Subsidizing Rules, and implementing projects in Turkistan, Mangystau, Atyrau, Aktobe, West Kazakhstan, Kyzylorda, Zhambyl regions or the city of Shymkent

The loan amount must not exceed 360 million tenge

The guarantee amount must not exceed 85% of the loan amount

The entrepreneur provides collateral for a loan in the amount of at least 15% of the loan amount (when calculating the sufficiency of the collateral, the pledge of the right to claim and the pledge of shares in the authorized capital of business partnerships are not taken into account).

Economy Sector

1. For projects in small and single-industry towns, and rural settlements – projects in any industry are eligible
2. For projects in regional centers – priority sectors of the economy
3. For projects implemented in Turkistan, Mangystau, Atyrau, Aktobe, West Kazakhstan, Kyzylorda, Zhambyl regions or the city of Shymkent – manufacturing industries listed in Appendix 1-1 to the Guarantee Rules.

2. Replenishment of working capital

3. Replenishment of working capital in the amount of 500 million tenge or less (except for current loan payments or payments for leasing agreements and other purposes not related to the applicant's main activity)

4. Refinancing.

Must not exceed the loan term

Collateral (% of the loan amount)

50% or less

Entrepreneurs’ own money in loans of 500 million tenge and more

Not less than 10% of the total cost of project implementation (cash, real estate, or other assets, including property of third parties)

Application Processing Time

For loans of 500 million tenge or less – up to 5 working days

For loans exceeding 500 million tenge – up to 10 working days

Economy Sector

1. For projects in small and single-industry towns, and rural settlements – projects in any industry are eligible
2. For projects in regional centers – priority sectors of the economy

2. Replenishment of working capital

3. Replenishment of working capital in the amount of 500 million tenge or less (except for current loan payments or payments for leasing agreements and other purposes not related to the applicant's main activity)

4. Refinancing.

The base interest rate established by the National Bank of the Republic of Kazakhstan + 5% or less

Must not exceed financial leasing term

Collateral (% of the loan amount)

Application Processing Time

For loans of 500 million tenge or less – up to 5 working days

For loans exceeding 500 million tenge – up to 10 working days

Program Participants

Individual entrepreneurs and legal entities included in the register of social entrepreneurship entities

Loan Purpose

Investments and replenishment of working capital

Economy Sector

Any economy sector

Location

Any place of implementation

Maximum Subsidized Loan Amount

For investment purposes – maximum 1,5 billion tenge

For replenishment of working capital ­­– maximum 500 million tenge

Maximum Guaranteed Loan Amount

360 million tenge

Renumeration Rate

The base rate of the National Bank of Kazakhstan+5%

Subsidy Amount     

The base rate of the National Bank of Kazakhstan+5%, 14,75% of which is subsidized by the state, and the rest is paid by the entrepreneur

Refinancing of loans and leasing transactions

2 years or less

Subsidy Term

For investment purposes – up to 5 years

For replenishment of working capital – up to 3 years

Guarantee Amount

Up to 85% of the loan amount

Guarantee Term

Must not exceed loan term

Fees and Charges

None