The government adjusted the soft loans program at 2%

The government allowed entrepreneurs who took a preferential loan at 2% to clarify the data on the number of employees in order to qualify for debt relief in April,announced the head of the Ministry of Economic Development Maxim Reshetnikov Maxim Reshetnikov

The government approved a draft resolution allowing entrepreneurs who have taken a preferential loan at 2% to clarify the number of their employees in order to qualify for the write-off of loans, Economic Development Minister Maxim Reshetnikov said at a round table on the implementation of the anti-crisis payroll 2.0 program, which started on June 1, 2020.

Risks of non-compliance with the requirement to maintain employment

On December 1, 2020, the second stage of the program of preferential anti-crisis loans began, when banks monitor the state of borrowing companies. This stage should end with the cancellation of their debt by April 1, 2021, subject to the requirements for maintaining employment by companies. “There have been concerns, especially given the current situation, which is really worrisome, that the business will not be able to meet the program’s basic requirement of retaining at least 80% of employees, [which is] the criterion for writing off half of the loan, and at least 90% for the full write-off of the loan,” - Reshetnikov said, adding that "the situation, of course, is different for banks," but most companies meet the requirements.

The first entrepreneurs who sent applications for an anti-crisis loan could unwittingly violate the requirements of the employment retention program, RBC wrote in September. At the time of issuing loans, banks did not have access to official information on the number of employees at enterprises as of June 1 (the basis for determining the state for the purposes of a preferential loan), and they were guided by data for April. Many entrepreneurs who applied for a loan in early June were “fully confident” that their workforce would be calculated as of June 1, and reduced their staff by more than 20% compared to April, thereby violating the conditions of preferential lending, the business explained. Ombudsman Boris Titov in his appeal to the government.

The amount of the preferential loan was calculated according to the formula: the number of employees as of June 1, multiplied by the minimum wage (12,130 rubles, taking into account regional coefficients and allowances) plus 30% of the minimum wage for insurance premiums and multiplied by the number of months from the date of conclusion of the contract until December 1. In other words, borrowers were motivated to apply for a loan as early as possible in order to get more money. Banks do not issue the entire amount at once, but transfer gradually, every month. You can spend funds on any documented expenses for entrepreneurial activity: for the payment of salaries, current needs, repayment of other loans, but not for the payment of dividends, the redemption of own shares and shares in the authorized capital and charity.