The procedure for granting preferential loans to start-up entrepreneurs was approved in Turkmenistan. The document is published on the portal of legal information of the Ministry of Adalat (Justice).

According to the procedure, a private entrepreneur is an individual who plans entrepreneurial activity without establishing a legal entity, belonging to small and medium-sized businesses, in accordance with the Civil Code of Turkmenistan and the Law of Turkmenistan "On Entrepreneurial Activity". The funds are allocated for business development within the framework of the developed and approved plan.

Funding varies up to 500 times the minimum wage established in Turkmenistan. Financial support is provided at 5 percent per annum. It is necessary to repay such a loan within 7 years, while the grace period for repayment of the principal is 2 years.

The support will be aimed at priority areas of small and medium-sized businesses that are of particular social and economic importance to society:

• Development of industrial production;
• Expansion of existing production facilities;
• Production of folk and applied art items;
• Acquisition of production facilities;
• Rendering services;
• Financing of projects related to the development of animal husbandry and poultry farming, manufacture, storage and processing of agricultural products.

To obtain a loan, an entrepreneur must provide:

• Loan request;
• Business plan or feasibility study;
• Copies of documents (contracts, invoices, etc.) confirming goods, works, services intended for use on the loan;
• Documents of entitlement for business;
• Lease/sublease agreement, certificate of premises ownership registration to the legal and actual location addresses, etc.
• Documents confirming the origin of the purchased equipment, as well as the supply of raw materials for production projects related to the acquisition of fixed assets.

In addition to the standard package, each bank can request extra documents confirming business compliance with the program.

After submitting the request, a special Commission of the credit institution examines the solvency of the entrepreneur and his business plan. Then the Commission informs of the loan approval or refusal within 7 days.

Earlier we reported that entrepreneurs will be able to obtain loans up to 500 minimum wages in Turkmenistan.