The Loan Guarantees Provision program allows the solvent entrepreneurs to get loans in terms of insufficient pledge amount and low liquidity, which is particularly specific for the SMEs operating in distant and close to the border regions of Armenia. The program allows entrepreneurs to qualify for loans by guaranteeing up to 70% of the principal of the loan and the interest rates for up to 5 years. The maximum amount guaranteed cannot exceed 15 million drams.The annual interest rates for the loans provided by the SME DNC of Armenia partner banks through Loan Guarantees Provision program are lower than those practiced in the market.
The Loan Guarantees are provided in accordance with following priorities:
- SMEs operating in manufacturing, services provision and trade* sectors
- SMEs operating in the regions with low level of economic activity (close to the border and countryside settlements, disaster zone, former industrial and scientific sites)
- Import substituting, exporting SMEs and those with export potential
- SMEs introducing and using new technologies and innovations
*In the regions with low level of economic activity
The loan guarantees are provided for the loans to be received only from the SME DNC of Armenia partner banks.
Partner banks of the SME DNC of Armenia:
ACBA-Credit Agricole Bank
Address: 1 Byron, Yerevan
Tel.: (374 10) 525142, 565858, 568585
E-mail: email@example.com, URL: www.acba.am
Address: 75 Marshal Baghramyan, Yerevan
Tel.: (374 10) 226526, 228717, 228744
E-mail: firstname.lastname@example.org, URL: www.anelik.am
Address: 13 Grigor Lusavorich, Yerevan
Tel.: (374 10) 580281, 528513
E-mail: email@example.com, URL: www.ashib.am
Address: 17 Tumanyan, Yerevan
Tel.: (374 10) 563725,
E-mail: firstname.lastname@example.org, URL: www.inecobank.am
Address: 2 Amiryan, Yerevan
Tel.: (374 10) 521320, 521532
E-mail: email@example.com, URL: www.unibank.am
Address: 10 Vazgen Sargsyan, Yerevan 0010, RA
Phone: (+374 10) 54 07 28, 54 07 36
The applicant SME have the right to select the bank.
THE PROCESS OF LOAN GUARANTEE PROVISION:
Step 1: Submission of the Application for the Loan Guarantee Provision
The applicant SME should prepare and present to the SME DNC of Armenia the following package of documents:
* filled in Application Form for guarantee (in the approved form);
* copy of current charter;
* copy of State registration certificate;
* copies of financial statements for the last accounting period;
* other information at applicant’s discretion;
* the SME DNC of Armenia discusses the submitted applications within two workdays and informs the applicants about the result.
Step 2: Loan Application Analysis
After submission of the Loan Application to the Bank the representatives of the SME DNC of Armenia and the Bank visit the applicant enterprise. The bank summarises the results of analysis, makes the decision and presents the proposal on loan provision and necessary guarantee terms to the SME DNC of Armenia.
Step 3: Qualification Committee
The proposal of the Bank is discussed within seven workdays by the special Qualification Committee which presents its conclusion.
Step 4: Decision of the Board of Trustees of the SME DNC of Armenia
The Loan Guarantee Applications with positive conclusion of Qualification Committee in two workdays is presented to the Board of Trustees of the SME DNC of Armenia for its final decision to be concluded within seven workdays.
Step 5: Contracts Signing and Guarantee Provision
After making the final decision the SME DNC of Armenia signs the Guarantee Contract with the applicant SME and provides the Guarantee.