Uzbekistan has approved new measures to expand access to preferential micro loans for business entities and the general public.
From now and on, a simplified mechanism of allocation of micro loans to newly registered individual entrepreneurs and family business representatives without the establishment of legal entity will be introduced throughout the country.
“The new mechanism provides for the issuance of micro loans for them in the amount of up to 20 times the minimum wage with the adoption of collateral for the goods needed for running business,” the document says.
In addition, according to the measures approved by the head of state, it is planned to expand the practice of allocating micro loans for entrepreneurial activities in the amount of up to 60 times the minimum wage pursuant to guarantees of citizens’ self-government bodies.
Among other things, the newly registered individual entrepreneurs and family business entities will be exempt by January 1, 2021, from fixed tax for a period of six months upon registration of micro loans.
There is another positive point: commercial banks will issue loans from the Preferential Lending Fund in the amount of up to 100 times the minimum wage for newly registered small business entities in remote and hard-to-reach regions, as well as areas with excessive labor resources. Experts anticipate that these measures will help increase employment through stimulation of individual labor activity.
