President of Uzbekistan Shavkat Mirziyoyev signed a resolution under which entrepreneurs from among the youth will be allocated soft loans and microloans within the framework of several state programs. As follows from the document, posted on the website Lex.uz and effective from June 2, most of the offers apply to citizens under the age of 31.
Thus, under the «Youth Business» program, loans are provided for a term of up to seven years at a rate exceeding the base rate (currently 14% per annum) of the republic's Central Bank by 4%. At the same time, the grace period for the principal debt is up to 1 year, and for interest payments — up to 3 months.
These funds, allocated under the guarantee of a third party, can be used for expenses in the following areas:
✅ learning a foreign language and digital technologies, mastering a new profession — up to 20 million soums ($1,600);
✅ studying marketing on social networks, freelancing, opening an online store, ensuring self-employment — up to 50 million soums ($4,200);
✅ home-based work, production and sale of textile products — up to 50 million soums ($4,200);
✅ baking, making and selling sweets — up to 100 million soums ($8,400).
The loan amount will increase if the businessman leaves some property as collateral with the bank. In this case, funds can be arranged to open a retail outlet in a tourist area or on a gastronomic street — up to 200 million soums ($16,700), as well as for the transportation of passengers and goods by road — up to 300 million soums ($25,100).
On preferential terms, entrepreneurs are entitled to take out a loan under the «Jobs for Youth» project. For example, for businessmen who have provided employment for more than a thousand people, the financial institution will issue 10 billion soums ($838,000) to expand the franchise network.
For aspiring entrepreneurs, loans are provided at a rate exceeding the base rate of the Central Bank by 1 percentage point. In this case, the maximum loan amount is 2 billion soums ($167,600). Such money will be available to Uzbekistan citizens under the age of 31 who have started their own business and aim to expand their operations.
Separately, measures to support innovative startup projects are outlined. To this end, the state invests in such initiatives at the initial stage — the amount of investment is set at $100,000.
According to the resolution, by the end of this year, «youth business incubators» will open in Tashkent, Karakalpakstan, Khorezm, Jizzakh, Namangan, and Surkhandarya regions, providing a range of services to business people and helping them enter the domestic and foreign markets. By the end of 2027, similar institutions will be launched in other regions of Uzbekistan.
From the document signed by the president, it follows that the state will allocate about $165 million to a number of commercial banks for the implementation of the relevant programs. Financing will be provided from the republic's Reconstruction and Development Fund.
It is expected that the support measures will affect more than 300,000 representatives of the youth, help create over 100,000 additional jobs, establish a mechanism for the successful entry of students and university graduates into the labor market, or push them to organize their own business.
