Governor of Chelyabinsk Region Petr Sumin allocated 30 million RUR to set up a small business lending support fund. Another 80 million RUR have been provided by the federal budget, so the fund’s resources total to 110 million RUR altogether.

According to the spokesperson for the Governor, the fund’s primary function is to act as a guarantor for small businesses borrowing money from a bank. In addition, preferential lending terms are offered to entrepreneurs by the fund itself. What is more, the fund is trying to negotiate for lower interest rates on bank loans provided the fund acts as a borrower’s guarantor.

The fund’s employees are going to consult both startups owners and experienced business people and conduct business workshops. At the moment, the fund is going through the registration procedure and is then to elaborate to bank and business communication mechanisms. After this has been completed, the local business community will be invited to use the fund’s services.