Industry development fund accepts requests on special-purpose loans granting at the rate of 5% per annum only for projects directed towards high technology implementation, new product creation or import-substituting production organization. The fund provides loans after strict examination against formal criteria.

An applicant provides security of the whole amount of loan (bank guarantee, surety, pledge). The fund is entitled to decrease the amount of loan security for net asset value of a fund receiver. Loans are provided on conditions of co-financing (loan amount cannot exceed 30-70% of a project budget depending on a chosen program).

Information on the Industry development fund co-financing programs, types of permitted loan use, project selection criteria and procedure

Criteria	Import-substituting projects	Pre-bank projects	Pre-investment projects	Consortium projects
Project budget (million rouble)	>100	>500	> 1000	> 500
Loan amount (million rouble)	50-300	50-500	200-700	100-700
Loan term	<5 years	< 5 years	<4 years	<7 years
Co-financing on the part of an applicant, investor or bank	> 30%	>70%	>70%	-
Desired sales volume of new production (million rouble) starting from the second year of series manufacturing	>500	>1000	>2000	>1000
Intended use	Buying production equipment for no more than 50% of the loan	-	-	-

 

WHO CAN APPLY FOR LOAN?

APPLICANT AND PROJECT PROFILE

Clean title of an applicant

• An applicant doesn’t undergo bankruptcy, liquidation or reorganization;
• An applicant doesn’t have unsettled claims which affect directly the project realization or in a volume exceeding 10% of the value of loaner assets (public proceedings or legally effective court decisions);
• An applicant doesn’t have tax liabilities and binding fees to budget;
• The structure of shareholders/participants/beneficiaries is public and clear.

Financial sufficiency of an applicant

• Positive credit history;
• Amount of net assets exceeds loan amount;
• No outstanding work financed by means of grants or subsidies from development institutes or federal budget.

An applicant’s project is directed towards import substitution

• A product/technology has competitive advantages over foreign analogue;
• A product is qualified as import-substituting;
• Positive dynamics of markets (steady demand for a product or analogues, market growth, presence of potential customers etc).

Research and development of a project correspond to the best available technology principle

• Belongs to the list of critical technologies or the list of priority developmental work;
• The novelty of the technology against the Russian technical level, product manufacture on its base which have no analogue in Russia;
• Existence of material and technical base for developmental work;
• The developmental work corresponds to the principle of the best available technology.

Industrial feasibility of a project

• Applicant’s plant assets are located in Russia and allow implement developments or an applicant has a timetable and budget for their creation;
• A project doesn’t have a critical dependence on imported raw materials and components;
• A project corresponds to the primary activity of a company.

Financial and economic efficiency of a project

• Feasibility of a project budget;
• Presence of financial assets (apart from the loan amount from the Fund) or a documented possibility to attract co-financing for a project realization;
• The amount of a discounted net cash flow generated by a project (Net present value) is positive;
• Internal rate of return of an investment project (Internal rate of return) exceeds 10%.

WHAT A LOAN CAN BE USED FOR?

New product/technology development

• Acquisition of equipment for developmental work and elaboration of a technology including creation of pilot-plant equipment;
• Developmental work;
• Technological work;
• Production and technical testing;
•  Purchasing expendable materials for developmental and technological work and testing;
• Clinical testing, product certification
• Feasibility study

Engineering services

• Production equipment adjustment;
• Front-end engineering and design as well as design estimation documentation for capital construction projects.

Acquisition of right for intellectual property only from Russian rightsholders.

Borrowed assets cannot be used for:

• Construction of buildings and objects;
• Carrying out research work;
• Real estate aquisition;
• Defense production.