05.Feb .2021 13:30

Gov’t Amends Restaurant Loan Subsidy Program

Gov’t Amends Restaurant Loan Subsidy Program
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According to the decision of the Government of Georgia, amendments were made to the loan subsidy program for the restaurant business. According to the members of the government, the changes will make the program more accessible for the business.

Natia Turnava, Minister of Economy noted that many restaurants wanted to engage in the program, but they were unable due to technical and legal issues.

Turnava declares, that after the amendments food facilities with loans in microfinance organizations can also participate in the subsidy program.

“We are also expanding the program, if it covered loans taken before March 1, 2020, now the subsidy will apply to the loans taken before December 1, 2020, as the food industry needed additional loans in the coming months, especially for working capital, salaries and rent”, Turnava notes.

According to her, the loan-to-equity ratio between fixed and current loans will be also revised. Until now, loans subsidy program was valid for those restaurants, which used 80% of the total loan to purchase the fixed assets. As a result of the amendment, the ratio between fixed and current assets has been determined at 50/50.

Natia Turnava notes, that the government would subsidize 80% of business loans.

The Minister of Economy also noted that sports facilities and kindergartens are able to participate in the program.
"The second category to which we extend the loan subsidy program is sport facilities, kindergartens and preschool facilities. In this case, the loan subsidy applies to loans taken from both the bank and the microfinance organization.
The sports facilities include fitness centers, swimming pools, gyms, as well as kindergartens, which at this stage cannot resume activities, "- said Turnava.

According to her preliminary information, up to 100 sports facilities and over 50 kindergartens will participate in the program.