What is a subsidy for small businesses? Subsidies for small businesses - features of obtaining government support

31.10.2023

Not all aspiring entrepreneurs are aware that they are entitled to government subsidies for starting a small business in 2019. But government subsidies are an opportunity to receive a certain amount to replenish start-up capital without burdening yourself with expensive loans and getting into endless debt. It is important to take into account the fact that the state deduction is provided without mandatory repayment.

The state is interested in the development of small businesses, since it revitalizes the economic situation, contributes to market expansion, and the development of the competitiveness of domestic production.

Last year, the Russian Federation was ready to spend 17 billion rubles on subsidies to small businesses based on the budget. In 2019, this amount, unfortunately, was reduced to 11 billion rubles. It can be assumed that these funds will most likely finance projects that have already begun. Nevertheless, many are attracted by the opportunity to receive a subsidy from the state to open and run a business. The following structures provide support to start-up entrepreneurs:

Employment Center;
Department of Entrepreneurship;
Local administration.

Let us note that those individual entrepreneurs who have gone through all stages of development and taken advantage of the state subsidy program note the favorable conditions for obtaining subsidies and the efficiency of the entire procedure.

It is worth noting that the financial contributions in question are gratuitous, unlike commercial bank loans. An individual entrepreneur, receiving such a subsidy, assumes a certain range of obligations, but they are not directly financial in nature. At the moment, these norms remain relevant.

In addition, special support is planned in 2019 in the fields of innovation, agriculture, medicine, tourism and, of course, education. Economic analysts are already predicting a significant surge in the activity of small and medium-sized businesses.
Experience has shown that receiving a subsidy from the Russian state is a fairly effective and expedient mechanism for activating the small and medium-sized enterprise segment. The main feature is that the conditions of entrepreneur support programs may differ in different regions.

Algorithm for processing government subsidies in 2019

The procedure for obtaining a subsidy for small business development is characterized by some technical and legal features. First of all, you need to be an official entrepreneur. If such a status exists, then it is necessary:

registration of an individual entrepreneur as an unemployed person at the Employment Center and inclusion in the relevant state registers;
providing the Employment Center with a thoroughly developed business plan (this document includes the intended scope and nature of future activities, indicating the location of the enterprise; the need for technical equipment and raw materials supplies; the level of expected income; an analysis of the profitability of the project as a whole);
approval of the business plan at the Employment Center;
registration of individual entrepreneurs with the Federal Tax Service;
re-applying to the Employment Center with an application to receive subsidies, supported by a package of necessary documentation;
conclusion of a subsidiary agreement between the individual entrepreneur and the state.

The fundamental feature of this small business financing system is that there is no need to return material resources received by individual entrepreneurs from government agencies when opening a new enterprise.

The initial stage of processing subsidies when opening a private enterprise is handled by the Employment Center - this is where all the basic information about the business activity of all categories of the population of the Russian Federation is concentrated. The employment center reviews business ideas submitted by applicants and determines their viability.

All initial information about the individual entrepreneur, his business plan, and the projected level of economic efficiency passes through the Employment Center.

In 2019, the role of the Employment Center in the procedure for regulating the economic activity of the population is expected to be further strengthened, this is due to the fact that many citizens are now in search of a permanent source of income. In addition, it is necessary to achieve maximum transparency and efficiency of the mechanism for receiving government subsidies.

In particular, the Employment Center provides a full range of necessary documentation in the shortest possible time, and the employees of the Employment Center are highly qualified and ready at any time to provide the full range of theoretical and practical assistance required by individual entrepreneurs at the stage of registering and opening their own business.

Every individual entrepreneur, when opening his own enterprise (even as a franchise), has the right to receive government support. The amount of such a subsidy varies depending on many factors, including the social status of the entrepreneur, but cannot be less than 60 thousand rubles.

Insurance, lending and banking services are not subject to government subsidies.

Funds can be obtained for all other legal activities if the entrepreneur has his own start-up capital in the amount specified by law.

It is much easier for individuals with Moscow registration to obtain subsidies in the capital, and, in addition, such entrepreneurs have several categories of subsidies to choose from.

Capital registration also determines the general subsidizing algorithm, which is not always fair for beginning entrepreneurs from other, more remote regions of the Russian Federation.

An individual entrepreneur, receiving a subsidy, undertakes to spend this financial amount on the development of his own business, but he can determine the scope of the initial use of capital independently. For example, funds can be directed to:

improving the material and technical base of the enterprise;
purchase of necessary equipment and industrial capacity;
renovation, expansion and construction of new premises for the enterprise;
purchase of raw materials for production;
expansion of staff;
costs of the company's intangible assets.

Individual entrepreneurs may also be provided with other expense items associated with opening and developing their own business. In general, the legislation of the Russian Federation is quite liberal in the distribution of subsidies. The entrepreneur enjoys complete freedom regarding the use of funds received as a result of subsidies.

An important point when receiving financial assistance in 2019 is that if the individual entrepreneur applying for a subsidy has not officially worked anywhere for the last five years, the Employment Center specialists can legally refuse to receive financial assistance. After all, if a person previously had money from somewhere for everyday needs, then he will be able to provide for himself in the future.

It is worth remembering that subsidies for business development are free of charge. The return of subsidized funds is not provided for by law. The only exceptions may be certain cases stipulated by the mechanism for providing subsidies.

The only condition is to receive complete and reliable reporting from the entrepreneur on the costs incurred. The collection and verification of this information is carried out by the Employment Center, as well as fiscal control authorities.

In case of misuse of the provided funds, the state has the right to demand their return, taking into account a certain amount of penalty. However, such precedents are extremely rare, since most beginning entrepreneurs are extremely responsible about the opportunity to receive financial government support for the development of their own business.

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03Sep

Hello! In this article we will talk about how to get a loan for a small business from the state.

Today you will learn:

What types of government loans exist for businesses?
Who can receive government support?
Which authorities should I contact for help?
What documents need to be collected?

The government offers an alternative - state support for small businesses. But before you turn to the authorities for help, you should understand what type of government loan will be optimal for you - that’s where we’ll start.

Types of loans from the state for business

In 2017, the government actively supports start-up entrepreneurs and provides assistance in the form of such forms of material support as:

Small business microfinance;
Guarantee from the state;
(free loan);
Compensation payments;
Tax relief.

Now we will consider each type of state support for small and medium-sized businesses separately.

Small business microfinance

Each region of the Russian Federation has a microcredit fund for small and medium-sized businesses. It is he who facilitates the issuance of borrowed funds to entrepreneurs on a preferential basis.

Lending conditions are different in each region. A significant advantage of this type of lending is its accessibility: money is provided regardless of the area of employment.

There are only some restrictions that are determined by each region independently. For example, for Moscow this is a limit on the amount of a loan to a young entrepreneur.

Average conditions for obtaining a preferential loan:

or physical () in the territory of the subject of the Russian Federation in which the loan will be received;
From 50 thousand to 1.5 million rubles (restrictions may be imposed on the amount depending on the scope of the organization’s activities);
The interest rate of a preferential loan ranges from 8 to 12% and will depend on the prospects of your business, market needs, the solvency of the borrower, the amount of borrowed funds and the loan term, the type of collateral;
Money is provided against security: property pledge, surety, pledge of a product in circulation, etc.;
The loan is issued in non-cash form;
If the conditions for providing money are not met, penalties are provided in the form of an increased percentage;
There is a limit on the number of loans;
The duration of consideration of documents for the provision of funds ranges from 5 to 10 days, depending on the region.

State guarantee

In this case, a commercial bank will give you the money, and the state fund, represented by the Federal Notary Chamber, will act as a guarantor. However, it should be borne in mind that not all commercial banks participate in the state program. Their complete list in your region can be obtained on the official website of the Russian government.

Unlike the first option, receiving funds under government guarantee does not differ in terms from a regular loan. Review of your application will not be quick. Also be prepared for the fact that the fund will not guarantee the entire amount, but only a portion.

Social enterprises providing services to citizens, production and industry, and innovation are most likely to receive a guarantee from the fund. When considering an application for a guarantee, the fund pays special attention to the number of jobs created by the organization.

Subsidies

Subsidies are the most desired type of government support by entrepreneurs. The thing is that it is provided to businessmen free of charge.

However, not all entrepreneurs can receive a subsidy.

Businessmen must meet fairly stringent conditions to obtain:

It is necessary to register with the Employment Center as an unemployed person;
Answer the psychological test questions at the same Employment Center;
Complete training in entrepreneurship;

At the same time, all expenditures of government money must be consistent and supported by documents. After an entrepreneur receives a positive response from the Center, he must register his enterprise. Only after this the money will be credited to your account.

It often happens that an entrepreneur is denied a subsidy. The grant may be allocated for the purchase of either equipment or goods for sale, or intangible resources. This should be stated in your business plan.

Grant

It is also provided to businessmen free of charge. The disadvantage of grants is that not everyone can receive one.

The following are eligible to receive a grant:

Beginning entrepreneurs (have been operating for no more than 12 months);
Entrepreneurs who do not have debts on taxes or loans;
Businesses that create a lot of jobs.

Also, the area in which the organization operates is important for receiving a grant. Each region defines these areas independently.

Compensation payments and tax breaks

In this case, the state simply compensates the entrepreneur for part of the money that he spent on business development.

The following companies can count on such a relaxation: companies producing innovative products, enterprises producing import-substituting goods, as well as service providers.

As for tax breaks, in 2017 a novice entrepreneur has the opportunity to take the so-called. They consist in exempting a businessman from paying taxes for two tax periods.

You can take advantage of the holidays if:

Are you an aspiring entrepreneur?
Organization on one of the following taxation systems: or;
You are employed in manufacturing, social welfare or science.

Requirements for borrowers

Let's take a closer look at what requirements are imposed on applicants for state support to receive a particular benefit. The information is given in the table.

	Conditions of receipt	Important Features
Microfinance	— registered in the region where funds are received; - the loan must be secured by property	— goal: development of small and medium-sized businesses; - loan terms - no more than a year
State guarantee	— the bank must participate in the state program; — you must be an active organization for at least 6 months; — registration in the region where the loan is received is required; — you do not have problems with creditors and tax authorities; — it is necessary to repay a certain percentage of the loan with your own funds (set in each region)	— The priority activities for financing are: production, innovation, construction, service activities, transportation, tourism (in the Russian Federation), education, medicine, housing and communal services. — Does not apply to the extraction and sale of minerals, gambling, banking and insurance activities, securities funds, pawnshops
Subsidy	— the importance of business for a constituent entity of the Russian Federation. Each subject has its own significant areas (you can find out the priority areas of activity for your region on government resources); — presence of a business plan that must meet certain criteria (also established in each region); — the entrepreneur must invest a certain amount of his own funds (depending on the program)	Funds are issued for the purchase of: — raw materials and materials; — production equipment; — intangible resources. The period of use of funds is limited. Typically 1-2 years
Grant	— business activity has been conducted for less than a year; — the businessman does not and has not had problems with loans and borrowings (“clean” credit history); — the enterprise creates a certain number of jobs; — you did not receive other government benefits; - availability of own funds	Funds are allocated for the development of medium and small businesses
Compensation payments	Borrowers can be: — manufacturers and developers of innovative products; — sellers of import-substituting goods; — organizations engaged in the provision of services	Spending goals: development of medium and small businesses
Tax benefits	— engaged in entrepreneurial activity for no more than a year; — you are a member of the taxation system: PSN or simplified tax system; — assistance is provided to companies engaged in science, production, and providing services to the population.

To summarize, government assistance is available for:

Beginning businessmen ();
Organizations involved in the production of products, development of innovative products;
Enterprises providing services to the public;
Entrepreneurs have no problems with loans.

Where to contact

For each material benefit, a certain government body is responsible, to which the entrepreneur must apply.

Microfinance is provided by the Entrepreneurship Support Fund in your region. To receive a loan on preferential terms, you need to collect a package of documents (it differs for individual entrepreneurs and legal entities).

You can find out more about this issue on the official website of the fund in your region; we will name only the main generally accepted documents:

Application and questionnaire of the applicant, as well as the guarantor;
Entrepreneur data;
Constituent documents;
Extract from the register of small and medium-sized businesses;
Certificate of entry into / and extract from there;
A copy of the applicant's passport;
Copy of SNILS;
Activity licenses;
Accounting and tax reports.

After you have collected all the documents, you should submit an application for a loan to the Support Fund. You can also download such a statement on the official website of the Foundation in your region.

For a government guarantee, you must apply with all the necessary documents to a bank that participates in a partnership program with the Entrepreneurship Promotion Fund.

The bank itself will evaluate the possibility of government support and submit the application to the fund, which will consider it within three days. An application for a guarantee should be attached to the standard package of documents required to obtain a loan.

A subsidy or grant can be obtained from the labor exchange. To do this, you must meet a number of conditions that we have already discussed above. The package of documents for receiving a subsidy includes an application and a business plan.

You can receive compensation payments at the employment center. To do this, provide a business plan and a corresponding application.

To receive tax benefits, you should contact the tax office, where you will receive information about the documents that will need to be collected.

Non-state support for small businesses

If you do not meet any of the criteria for receiving government assistance, you can apply for non-government assistance for small businesses.

Such assistance is provided by non-state funds affiliated with banking organizations, and is expressed in the form of a grant. At the same time, a non-state grant can be issued both with a return and on a gratuitous basis.

The grant is received on a competitive basis. At the same time, members of the commission will evaluate the economic benefits of the project.

To the standard package of documents for receiving a grant, you will need to attach a document that will describe the product and its cost.

Starting a business is always associated with certain risks. For many people, starting their own business is associated with increased responsibility, both personal and financial. The financial issue is the main stumbling block in any endeavor. In addition to a great desire to become an entrepreneur, you must have a sufficient amount of money. It will allow you to comfortably begin to implement your plan.

In a situation where there are few personal funds, you can apply for. Banks offer lending systems on different conditions. But, in any case, the money will have to be returned with interest. The state provides subsidies for the development of small businesses, as well as for their opening. There is no need to return them, but the requirements for use are quite strict. Let's look at the features of government support for future and current entrepreneurs.

Who can apply?

Legal entities and individuals have the right to receive subsidies free of charge. No money needs to be returned. They are issued as compensation for lost income or financial costs in the production process, as well as the sale of goods and services. This is only a part of the possible purposes for issuing funds. Basic information about subsidies is contained in Articles 78 - 78.2 of the Budget Code of the Russian Federation and in Law No. 209-FZ of July 24, 2007.

Sources of subsidies for business development can be:

federal budget;
budget of state extra-budgetary funds;
budgets of the constituent entities of the Russian Federation;
budgets of territorial state extra-budgetary funds;
local budgets.

Regulatory and municipal acts must contain the following information regarding subsidies:

a list of categories or selection criteria for persons who are eligible to receive;
the purposes for which they are provided;
conditions and procedure for receiving;
the process of return in case of violation of the conditions for which subsidies were provided;
the process of returning unused subsidies in the reporting financial year;
provisions reflecting compliance with established standards for the provision of subsidies.

When receiving subsidies, an important condition is the consent of the budget manager to carry out checks and control over the subsidy recipient's compliance with the established goals, conditions and procedures.

Amount of subsidy provided

The amount of subsidies is determined by the constituent entities of the Russian Federation. The maximum volume and spending goals are set. There is a possible increase in the subsidy by a certain amount for each unemployed person hired.

For entrepreneurs with Moscow registration, the subsidy amount is significantly higher than in the regions. And there are three subsidy options available:

in the amount of 300,000 rubles is given to persons who have not previously worked anywhere, as well as in cases where they have just completed their military service; are disabled or the sole breadwinner of the family. These statuses must be documented (military ID, certificate of disability or loss of a survivor);
in the amount of 60,000 rubles, which can be increased by the same amount for each unemployed person who is hired;
in the amount of 25,000 rubles is provided to beginning entrepreneurs for the development of small businesses (registration is possible through individuals - intermediaries).

For what purposes can the subsidy be used?

Entrepreneurs can use funds for certain purposes. The list is approved by the subject of the Russian Federation, which provides the subsidy. Among the most common purposes are:

purchase of raw materials for production;
acquisition of equipment or materials for carrying out activities;
payment for intangible assets (technology, patents, etc.).

Subsidies are not issued when conducting activities related to the sale of tobacco products, alcohol, as well as rental of equipment and real estate.

What do you need to get a subsidy to start a business?

One of the main requirements is to have unemployed status. The person applying for the right to receive a subsidy (hereinafter referred to as the applicant) should not be an individual entrepreneur, nor a founder or co-founder of any company. In addition, the work book must contain an entry - “dismissed”.

A subsidy for starting a small business is issued once. Only persons who are not employed by the Employment Center can receive it.

To receive a subsidy for starting a small business, you must contact the Employment Center and register there. To do this, you need a passport, a certificate from your previous place of work about your salary, Taxpayer Identification Number (if you have one), a certificate of education and a work record book. Next, you will need to submit an application about your desire to receive a subsidy. When the procedure for registering the applicant as unemployed is completed, he will be informed of the address of Sberbank where he should open a savings book. The time of the next visit will also be indicated.

the registration period for individual entrepreneurs should not exceed one year;
funds (subsidy amount) must be spent within one calendar year;
the subsidy can only be spent on the purposes that were specified in the business plan (and this is the most important thing).

If during the verification process it is discovered that the subsidy was spent inappropriately, the individual entrepreneur will be required to return the funds received in full.

After a year, the individual entrepreneur is required to report on what needs he spent the issued funds on. If there is a part for which the target expense is not documented, the individual entrepreneur will be required to return the rest of the amount. Therefore, it is important to properly plan the implementation of the goals stated for the subsidy. And spend the entire amount within a year.

Obtaining government support is not an easy process. It takes a lot of time. If you are confident in your abilities, and, most importantly, if you meet the requirements, an entrepreneur can obtain a subsidy. The amount of funds, as a rule, is not too large and is set by the subjects. The subsidies offered by the state for the development of small businesses will help modernize production (purchase equipment or technology) and purchase raw materials. If you decide to open your own business, then the participation of allocated funds will slightly ease the financial burden on the newly created individual entrepreneur. Subsidized state support is a real, but very long and labor-intensive way to receive money. Strict conditions for issuance and use do not find too many people willing to apply for state support.

One of the main obstacles to starting your own business is the lack of funds. Often it is this obstacle that stops potential entrepreneurs from realizing their plans. Those who have already opened their own business may also face the problem of lack of finance to maintain and develop the business. In case of such problems, you should learn in detail about how to obtain a subsidy for a small business.

The state is interested in the development of the economy, so today Russia has a special program to support start-up entrepreneurs. Under this program, the state issues subsidies.

What is a subsidy and for what purposes is it issued?

A subsidy is a targeted payment from the federal or local budget.

The subsidy is given free of charge, so it should not be confused with a loan or loan. That is, after receiving a subsidy to the state, you do not have to return anything. Thus, the first property of a subsidy is its gratuitousness and irrevocability.

The second property of the subsidy is its strictly targeted nature.

The purposes of spending the received subsidy may be:

purchase of equipment and consumables;
purchase of raw materials;
purchasing intangible assets such as patents.

Specific types of financial support for small businesses are approved by the executive body of the constituent entity of the Russian Federation (the Government of the constituent entity). Typically, detailed information can be found on the website of the executive authority of the constituent entity of the Russian Federation dealing with issues of industry, entrepreneurship and trade.

The targeted nature of spending the subsidy is expressed in the fact that the citizen who received it is responsible for the targeted use of the subsidy. If it is discovered that funds were misused, the entire amount will be recovered from the violator. In addition, one year after receiving the subsidy, you will be required to report on how the funds were spent. If you have not spent all the funds, the rest will need to be returned.

Entrepreneurs who plan to open a business in the production and sale of alcohol and tobacco products, in real estate, or in equipment rental cannot receive a subsidy.

Amounts and types of subsidies

The amount and types of subsidies are established by each subject of the Russian Federation. Let's give an example. In Moscow there are the following types of subsidies:

300,000 rubles to open a business (conditions must be met: the entrepreneur has not previously been employed anywhere, has a disability, or is the only parent of a child being raised);
60,000 rubles for starting a business (with the possibility of increasing the subsidy by the same amount for each additional job created);
25,000 rubles for business support.

Procedure for receiving a subsidy for starting a business

Registering as unemployed

Receiving a subsidy is a rather long process and includes several stages.

You must register as unemployed. To do this, you must, firstly, not have an official place of work. Secondly, not to be a founder of any legal entity and not to be registered as an individual entrepreneur. If these conditions are met, then you should contact the employment center at your place of residence.

After expressing your desire to register as unemployed, you will be asked to fill out a form. You must also bring originals of the following documents with you:

passport;
education document;
TIN certificate;
insurance certificate;
certificate of average monthly salary.

If you have never worked, you do not need to provide a certificate.

When filling out the documents given to you, do not forget to inform the employment center employee about your plans for self-employment in your own business. Don’t forget to also check where the self-employment department is located.

As soon as all your documents are accepted, you will be notified of the date of your return visit. Also, most likely, they will tell you where to open a savings book to transfer first unemployment benefits and then subsidies.

The next step is writing a business plan. Here you need to be very careful and not hope for a freebie. The state, although it provides support for business, is (let’s be honest) reluctant to give away budget money.

The business plan must be competent, detailed and realistic (executable).

Must be indicated:

project cost;
economic feasibility of the project;
project payback period;
the purpose of receiving support from the state;
planned own costs;
required subsidy amount;
creation of additional jobs.

After the business plan is ready, we take it to the department for promoting self-employment of citizens (both in printed and electronic form).

We come to the commission

You will be notified in advance of the date of the meeting of the commission, which, based on the presented business plan and your answers to the questions asked, will decide whether to issue you a subsidy or not. You need to be prepared: at a minimum, you should be very familiar with your business plan.

Based on the results of the commission meeting, you may be approved for a subsidy or denied it. Don’t be upset if the latter happens - you will simply be asked to finalize the business plan and come back to defend the business plan again.

Final Steps

All you have to do is register as an individual entrepreneur (registration period is 5 working days) and bring the documents issued by the tax office to the Employment Center. After this, the subsidy will be transferred to your savings book within one month.

You can receive funds from the state not only for opening, but also for developing a business.

This is somewhat simpler. It is necessary to provide the Employment Center with a certificate of state registration as an entrepreneur, documents confirming compliance with the requirements for candidates for subsidies, and a business plan.

It’s worth saying a little about the requirements for candidates to receive a subsidy. They may be different in different entities and may relate, for example, to the availability of own funds, activities in priority sectors, completion of special courses by the entrepreneur, etc.

Small business subsidies- this is one of the popular and effective ways to support small businesses in Russia. In this way, the state encourages people to start their own business and develop it further. Relevant regional and federal programs have been developed. How and where to get a subsidy, what you need for this, we will tell you below.

Who can count on subsidies for small businesses?

According to the Small Business Support Program in the Russian Federation, anyone who wants to engage in entrepreneurial activity has the right to count on assistance from the state, including in the form of free subsidies. Such financial support is provided in strictly fixed amounts of money valid in each individual region. Almost everyone can apply for such state support. But it is not a fact that everyone will receive it.

It should be taken into account that having your own funds is not superfluous, since the state is not ready to cover all the upcoming expenses of a future businessman. However, unlike a bank loan, no one will demand the return of the allocated subsidies from the entrepreneur - provided that the allocated money is used for its intended purpose.

Subsidies provided by the CZN

Only citizens recognized as officially unemployed can receive free assistance from the state. Therefore, after deciding to open your own business with the help of subsidies, you will need to register with the Employment Center (Employment Center) in order to obtain unemployed status. To do this, you must submit the following documents:

passport;
SNILS (pension insurance certificate);
education document;
a certificate from the last place of work about the amount of wages for the last 3 months, which was paid to the employee before his dismissal;
a statement stating the desire of the unemployed to take part in the self-employment program;
drawn up business plan.

What is the latest document? This is a kind of estimate of future expenses and income, justifying the feasibility and benefits of creating an enterprise; it also indicates the approximate payback period.

A package of documents is submitted for consideration to a special commission operating at the Employment Center, which will make a final decision on whether to provide a subsidy or to refuse one.

If the decision is positive, then an agreement is concluded between the citizen and the Central Health Centre, according to which a free subsidy will be transferred to his personal account.

The state is ready to subsidize an unemployed citizen only if the central employment center has not provided him with a suitable job. In Moscow, the amount of the subsidy is no more than 10,200 rubles and is intended to cover the costs of state registration of a legal entity, individual entrepreneur or peasant (farm) enterprise: for the preparation of registration documents, payment for notary services, the purchase of forms, the production of seals or stamps (compensation for the amounts actually spent) . In addition, future entrepreneurs will be provided with consulting and information support.

Let us note that such rules, provided for by Moscow PP dated December 19, 2012 N 757-PP, were introduced relatively recently: previously, financial support for small businesses from the Central Bank was more significant and amounted to 58,800 rubles. You should find out about the availability and size of regional subsidies from local employment agencies.

Subsidies provided by local governments

Unfortunately, government assistance from the Central Scientific Research Center is minimal, and it is not enough for the development of a more or less serious business. Of course, you can also use your own savings. But what if they are also missing?

Don't know your rights?

When your own business requires decent investments, you should contact local government authorities (at your place of residence). In this case, you can expect to receive a larger amount. As a rule, we are talking about 300 thousand rubles.

What is required from a future businessman in this case? You need to prepare the same package of documents as to receive a subsidy from the employment center. Only it is submitted to the department dealing with the small business development program. The size of the subsidy from local governments is much larger than the size of the subsidy of the central tax center; accordingly, the competition between applicants for it increases. It is very important that your own business that you have opened is of interest to regional authorities, so that they have a desire to provide financial support specifically to your small business.

If you are lucky and receive the money, you should be prepared for the fact that every month you will have to submit a report on the intended use of the allocated funds. Otherwise, when the funds are not used for their intended purpose, they will have to be returned.

Also, the allocated funds must be used within a year. If this is not done, then the unspent balance will be returned. All expenses in the annual report must be documented.

The nuances of subsidizing small businesses

When applying for government support for your own business, you should remember some nuances, in particular:

if you are planning activities related to real estate, alcohol, tobacco products, or performing supply functions, then you cannot count on help from the state;
the future entrepreneur must have his own financial resources, since the state, as mentioned earlier, is ready to provide him with only partial financial support (usually no more than 40%).

Other types of state support for small businesses

In addition to direct cash subsidies for small businesses, government agencies can offer small business representatives assistance of a different nature.

Rent of non-residential real estate, land, equipment at reduced rates, or even free of charge.
The state can also provide assistance in obtaining a bank loan on preferential terms.
Subsidizing the acquisition of fixed assets by an entrepreneur on leasing terms. We can talk about either a down payment or full repayment of the payment. The size of the subsidy directly depends on the cost of the operating system. For example, the city authorities are ready to subsidize up to 1/3 of the cost of the leased item excluding VAT (value added tax), but in amounts not exceeding 5 million rubles.

Moreover, regions may have their own programs for supporting and subsidizing small businesses, which a future entrepreneur can learn about from the media or get advice from specialists directly involved in these issues.

On the basis of funds for support and assistance to small enterprises, there are bodies that provide assistance to entrepreneurs in maintaining accounting records and providing legal support to businesses. This activity is relevant and in demand because it allows the entrepreneur to reduce the costs of attracting specialists.

Subsidies for small businesses are a good help for effective people who strive not only to open their own business, but also to further develop it for the benefit of their family and society as a whole.