According to the Decree, the Fund will directly grant loans to small and medium-sized businesses if they meet 4 following requirements:
- Meet regulations laid down in Article 4 in the Law on Support for Small and Medium-sized Enterprises;
- Have feasible business plans and projects, use new intellectual property or technologies or business models in accordance with regulations of specialized laws;
- Ensure that the owner’s equity participation in a business project or plan is equal to at least 20% of total investment in implementation of the business project or plan, and ensure adequate capital for implementation of the business project or plan;
- Meet regulations on collateral for borrowed funds as provided in this Decree.
Each enterprise entitled to borrowed fund for implementation of each business plan or project will not exceed 80% of total investment in each plan or project.
The direct lending interest rate applied to enterprises will equal 80% of the minimum commercial lending interest rate.
The Decree No. 39/2019/ND-CP is set to enter into force on July 1, 2019.
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