Measures of the state support

Conditions for the provision of state grants in the national project for the development of entrepreneurship

The state grant for the implementation of new business ideas is provided in accordance with the rules within the national project on the development of entrepreneurship, established by the Resolution of the Government.
The new business idea means an entrepreneurial initiative directed to the implementation of a determined project, involving release of goods, service delivery, and performing work not possible in the field.
The realization should result in the development or introduction into the market of new, improved products (products/services/works or already implemented in practice of other enterprises distributed through technological exchange (free licenses, know-how, consultations).

The maximum amount of the grant is KZT 5 million.

State grants are provided by the department of entrepreneurship and industry on the basis of competition results on selection business applications. The office is responsible for coordinating this state support measure at the local level.

Subjects of social entrepreneurship, participants of the “One Village – One Product” Program, carrying out activities related to excisable products, aspiring young entrepreneurs and aspiring entrepreneurs can participate in the competitive selection in priority sectors of the economy.
* social entrepreneurs are entities included in the register
in accordance with the order of the Ministry of National Economy of the Republic of Kazakhstan dated July 17, 2023 No. 140.
* aspiring young entrepreneurs are entrepreneurs under the age of 29, whose state registration as an individual entrepreneur is less than 3 years.
* beginner entrepreneurs - entrepreneurs whose state registration as an individual entrepreneur does not exceed 3 years.

The list of priority sectors of the economy includes 61 types of activity: agro-industrial complex, light industry and furniture production, building materials, metallurgy, metalworking, transport and warehousing, tourism, information and communications, healthcare, education, art, entertainment and recreation, etc.

Conditions required for the contest:
1) co-financing of project implementation costs in the amount of not less than 20% of the grant amount in monetary or movable/immovable property;
2) Creation of new jobs;
3) The business project must be an infrastructure or investment plan that provides the infrastructure.

Grant funds are USED for:

1) purchase of fixed assets (also construction, modernization, reconstruction, major repair), raw materials and materials, necessary for production or service.
2) acquisition of intangible assets;
3) acquisition of technology;
4) acquisition of the rights to complex entrepreneurial license (franchising);
5)The expenses related to researching and introducing new technologies.
The acquisition of property, plant and equipment (equipment) must be supported by appropriate documents (contract/contract/equipment passport/quality certificate).

Grant funds CANNOT BE USED:
1) for the acquisition of real estate and (or) land;
2) as payment for rent;
3) for the acquisition of fixed assets (receiving services/performing work) from affiliated/related companies/persons and (or) from close relatives of the entrepreneur;
4) for the purchase of used fixed assets (equipment).
5) for the purchase of passenger vehicles, with the exception of vehicles intended for the transportation of goods that have a body or a loading platform separate from the cabin, as well as projects related to the rental and rental of passenger cars and light vehicles of domestic manufacturers, in accordance with Appendix 1 to these Rules for the provision of state grants;
6) for the purchase of farm animals (cattle/small cattle, poultry, bees, as well as other farm animals), with the exception of food production projects related to the manufacturing industry.

The entrepreneur disburses the grant funds by non-cash payment to the account of the counterparty registered as a business entity (purchase of used vehicles from an individual is allowed).

Grants CANNOT BE PROVIDED:
1) under reorganization, liquidation, or bankruptcy, and the activities of which have been suspended in accordance with the current legislation of the Republic of Kazakhstan;
2) in charge of paying taxes and other necessary expenses to the State budget;
3) the main type of activities that provide property for rent;
4) that had not proved co-financing (cash and movable/immovable property involved in a business project) expenses for the implementation of a business project in the amount of at least 20% of the grant;
5) who are in the register of unfair participants of public procurement;
6) according to their credit history, the participant has unpaid financial obligations;
7) who received support for the provision of government grants within the framework of these Rules (including during the period of validity of the program “DKB-2025 (2020)”);
8) registered and planning to implement a business project in another region that does not correspond to the region where the competition is held.

To conduct the competition, by decision of the regional akim, a competition commission is created and its composition is approved.
The competition commission is formed from representatives of local executive bodies, public associations, scientific and educational institutions, industry experts, regional media, consisting of at least 7 (seven) people.

When considering application to the competition, commission decide possibility/impossibility of providing a grant on the basis of following conditions (including based on the criteria for evaluating an entrepreneur’s project within the framework of business ideas, reflected in Annex 6 to these rules of state grants):
1) novelty of business idea;
2) competitiveness of business-project (market needs study - marketing analysis);
3) the readiness of the business project to implement (the development of the organization of production, the availability of space for project placement, the market, the level of readiness of the project to start production);
The criteria for novelty of business ideas includes projects that produce goods, provide services, perform works, use new or improved technologies in the region (cities of republican importance, the capital).
Scoring of the project for its evaluation shall be carried out on the basis of criteria of assessment of the project of the entrepreneur within the framework of business ideas, specified in Annex 6 to these Rules of granting of state grants. The maximum score assigned by the member of the competition commission for one project of the entrepreneur is 70 points.
According to the results of voting the number of points put up by the members of the competition commission is summed up and the final decision of the competition commission is determined. Information about the personal voting of competition commission members when selecting entrepreneurs is not required to be disclosed.
For the participation in the competition, the entrepreneur has the right to submit only one application. Applications are accepted within the deadline specified in the announcement of the competition. Applications are accepted at the place of registration (legal address) of the entrepreneur. Examination of the application shall be carried out under the following conditions:1) registration of the application for participation in the competitive selection by means of information system kezekte.kz.
2) the presence of a personal account in the information kezekte.kz;
3)confirmation of the absence of arrears on mandatory budget payments;
4) in order to confirm co-financing with real estate participating in a business project, the entrepreneur has land plot(s) with land use rights and (or) private property or other real estate, confirmed as a result of information interaction of the subsidy information system with automated information system of the state land cadastre and the state database "Real Estate Register";
5) in order to confirm co-financing with movable property participating in a business project - the entrepreneur’s possession of movable property, confirmed through information interaction of the subsidy information system with the state register of agricultural machinery and (or) the “Car” database.

Entrepreneurs attach to the application the following scanned copies of documents in PDF format:
1) a certificate of average number of employees at the time of application, certified by the signature of the head and stamp of the applicant (if any);
2) a copy of the document confirming the entrepreneur’s training in the basics of entrepreneurship under the project "Bastau Business" with a period of limitation of not more than 3 (three) years;

3) documents confirming the co-financing of the expenses for the implementation of a business project in the amount of at least 20% of the amount of the state grant provided, bank account statement on the presence of funds or documents in the current account of the entrepreneur, confirming the estimated value of movable and (or) immovable property involved in the business project;
4) a copy of the notice of registration of the individual entrepreneur with information on the implementation of the entrepreneur’s activities in the priority sectors of the economy (in case of failure of information due to the interaction of information systems).

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The purpose of the program "Business Road Map 2020"
The Unified Business Support and Business Development Program "Business Roadmap 2020" (hereinafter referred to as the Program) has been developed to implement the Address of the President of the Republic of Kazakhstan to the people of Kazakhstan "New Decade-New Economic Growth - New Opportunities of Kazakhstan" and the National Development Plan of Kazakhstan until 2020. The goal of the Program is to ensure sustainable and balanced growth of regional entrepreneurship, as well as to maintain existing and create new permanent jobs.
2. What support is available for the project in the framework of the "Business Road Map 2020" program?
The first direction of the Program provides the entrepreneurs with the following financial support measures:
- subsidizing part of the interest rate on loans / leases of banks / development banks / leasing companies;
- partial guarantee on loans from banks / development banks;
- Development of industrial (industrial) infrastructure;
- Granting of state grants.
3. Are there any industry restrictions for starting entrepreneurs?
The participants in the first direction of the Program can be entrepreneurs, beginning entrepreneurs, implementing and (or) planning to implement their own projects in rural settlements, small towns and single-industry towns without industrial restrictions.
4. What is a subsidy?
For example, you got a loan with an interest rate of 14%. The state pays you 10% of your loan, the rest you repay yourself. This is called subsidizing.
5. What part of the loan interest rate is subject to subsidization for a novice entrepreneur?
Subsidies are provided only for loans / leases of financial leasing with a nominal interest rate of no more than 14%, of which 10% will be subsidized by the state, and the difference is paid by the entrepreneur.
6. Is it possible to prolong the period of subsidization?
The term of the subsidy is 3 years, with the possibility of extending the term of the subsidy to 6 years. In the event that several subsidy contracts are concluded for one project, the total period of subsidization is established from the moment the financial agency signs the first contract of subsidization.
7. For how long does the company provide subsidies for start-ups?
The term of subsidizing the loan is 3 years.
8. What should be the amount of the loan on which interest rates are subsidized?
Up to KZT 750 million.
9. Does the participant of the program need to ensure the participation in the project of own funds?
An entrepreneur who has a loan in excess of KZT 180 million must ensure the participation in the project of its own funds, incl. property of third parties provided for collateral, at a level not less than 10% of the total cost of the project. For loans up to 180 million tenge - participation of the entrepreneur's own funds is not provided.
10. Are there any fees / charges from the side of the bank when subsidizing?
The Bank does not charge any fees, fees and / or other payments related to the loan, except for commissions, fees and / or other payments:
1) associated with changes in credit conditions initiated by the Entrepreneur;
2) levied for the reason of violation by the Entrepreneur of the obligations under the loan.
11. What are the required conditions for participating in the program?
There are two mandatory conditions:
- The participant should not have tax debts;
- The participant should not have debts on obligatory pension and social transfers.
12. How can I get a subsidy?
1. First of all, you need to apply to the bank with a loan application. If at the moment there is a loan in progress, then you need to provide an application for a sub-grant. After the approval of the subsidy, you must provide an application to reduce the interest rate on the loan to the appropriate level. The application form can be obtained on the electronic site of the Damu Foundation www.damu.kz.
2. The entrepreneur, after receiving a letter from the bank, provides documents and a statement to the regional program coordinator.
3. After the submission of the full package of documents within 10 working days, this project is submitted for consideration by the meeting of the Regional Coordinating Council. Based on the results of the discussion, the board decides on the possibility / impossibility of subsidizing the Entrepreneur.
4. After the decision is taken, the regional program coordinator sends a notification (a copy of the minutes) of the entrepreneur, the Bank, and the Damu Fund.
5. After receiving the notification, the Bank, the Damu Fund, the entrepreneur enter into a three-party contract on subsidization.
6. In case of not timely payment of obligations to the bank by the entrepreneur, payments for subsidies are temporarily stopped, and in the future and completely cease.
13. In what cases the loan is discontinued?
The financial agency suspends, and the RCC takes a decision to terminate the Subsidy of the Entrepreneur when establishing the following facts:
• misuse of a new loan, which is subsidized;
• failure by the Entrepreneur to pay obligations to the Bank in accordance with the payment schedule to the bank loan agreement;
• the arrest of accounts of the Entrepreneur;
• claiming the leased asset from the debtor in cases stipulated by the legislation of the Republic of Kazakhstan.
• inconsistency between the project and / or the Entrepreneur with the conditions of the Program and / or the decision of the CSW;
• non-receipt by the Entrepreneur of the leased asset under a financial leasing contract, under which subsidies are provided.
14. What is the necessary list of documents for subsidizing?
On the first and second direction of the Unified Business Support and Business Development Program "Business Road Map 2020" (hereinafter referred to as the Program):
• application form for participation in accordance with the annex to the standard;
• a certificate or certificate of state registration (re-registration) of a legal entity (a copy certified by the seal / signature of the service recipient);
• a license if the activity is licensed (a copy certified by the seal / signature of the service recipient);
• charter (the joint-stock company additionally provides a prospectus for the issue of shares and an extract from the register of holders of securities (a copy certified by the seal / signature of the registrar);
• a certificate from the tax authority on the absence of arrears of compulsory payments to the budget, issued not later than 30 (thirty) calendar days before the date of the request;
• a letter from the second-tier bank / Development Bank with a positive decision on the possibility of granting a loan or lowering the interest rate on the loan of the beneficiary on terms that allow the beneficiary to participate in the Program;
On the third direction of the Program:
• application form for participation in the established form of the service provider in accordance with the appendix to the standard;
• certificate or certificate of state registration (re-registration) of a legal entity;
• a license if the activity is licensed (a copy certified by the seal / signature of the service recipient);
• Articles of association, joint-stock companies provide a share issue prospectus and an extract from the shareholders register (a copy certified by the seal / signature of the service recipient);
• a certificate from the tax authority on the absence of arrears of compulsory payments to the budget, issued not later than 30 (thirty) calendar days before the date of the request;
• Cargo customs declarations with notes of the customs authority that carried out the release of goods / products in the export regime;
• shipping documents with a note of the customs authority located at the checkpoint at the customs border of the Republic of Kazakhstan;
• documents confirming the availability of an appropriate level of foreign exchange earnings for the last reporting period;
• a letter of the second-tier bank / Development Bank with a positive decision on the possibility of lowering the interest rate on the entrepreneur's loan on terms that allow participating in the Program;
15. In which institutions can I get information on state support for entrepreneurs?
Full and detailed information on state support for entrepreneurs can be obtained in the following institutions:
1. State Institution "Management of Entrepreneurship and Tourism of Kyzylorda region"
2. National Chamber of Entrepreneurs "Atameken"
3. "Kyzylorda Regional Center" LLP
Located in the building "House of Entrepreneurs" at: Kyzylorda city, Aiteke bi Street, 28.
4. JSC "Damu" Entrepreneurs Support Fund located at: Kyzylorda city, Zhurba Street,12.
16. Is it possible to obtain a loan in other banks, after consideration of the project at the Regional Coordination Council?
An entrepreneur who has received a positive decision from a regional coordinating center can obtain a new loan from other banks.
17. Is it possible to subsidize loans with floating interest rates?
Subsidies are also subject to loans with floating interest rates. In this case, in case of exceeding the interest rate of remuneration above the limit values established under the first direction of the Program, the operation of the subsidy agreement for this loan is terminated.
18. Is microcredit provided under the "Business Roadmap 2020" program?
On the first direction of the program in rural areas, small towns and monocities, for private entrepreneurs, microcredits are provided to support start-ups
19. Is it possible to receive subsidies to persons who have debts to the State and the Bank?
Persons who have debts to the State and to the Bank are not eligible for a subsidy.