The Da Nang People's Council has recently issued Resolution No. 60/2021/NQ-HDND on interest rate support for small and medium-sized enterprises (SMEs) across the city which are accessing loans from the Da Nang Investment and Development Fund to implement production restoration and expansion projects in the context of COVID-19.

Specifically, the beneficiaries are SMEs citywide, and their projects’ finance loans must have terms of more than 2 years.

The total capital disbursed to implement this Resolution shall not exceed VND200 billion. The city budget will cover 50% lending interest rates according to the Fund’s current regulations on lending interest rate, and the amount of financial support is calculated on the total disbursed capital.

The interest rate support period will not be more than 24 months from the date of signing the credit contract. The maximum amount of disbursed capital supported by the maximum interest rate per enterprise will not be more than VND10 billion. The principle of interest rate support is that the investor is approved for a loan within 12 months from the effective date of this Resolution.

Projects that have already accessed concessional credit capital and State credit guarantees, or have enjoyed other loan interest rate incentives are not eligible for interest rate support under this Resolution. The city budget will not cover the arising bank interest because SMEs do not pay the principal capital in accordance with regulations.

Reporting by MINH LE - Translating by M.DUNG