Enterprise Georgia seeks to promote domestic exporters overseas though the various financial support mechanisms. EG organizes and co-finances participation of Georgian entrepreneurs at the International trade fairs, exhibitions, and showrooms.

 

• Beneficiary must be eligible  to participate at the international event ( according to  the agency’s Eligibility criteria)
• Company is evaluated based on the selection criteria, where it is awarded with an appropriate score
• Qualified applicants with the highest scores will be selected for participation in the event
• In the case of equal points, company with the highest income over the previous calendar year is preffered to the company that produced a larger number of products during the last year. If, considering all the criteria, the scores remain unchanged, the Agency will give preference to the earlier application.
• Based on the given s core the following co-financing model is applied accordingly
• The maximum number of companies participating in a particular exhibition and the amount of co-financing shall be determined by the Agency on the basis of the budget and co-financing model provided for this program.

 

Co-Financing Model

• Depends on the size of the enterprise in accordance with the Law of Georgia on Accounting, Reporting and Auditing (www.reportal.ge)
• Depends on the numebr of international events planned within the following calendar year
• The percentage of the Agency’s co-financing may be between 50 and 90 per cent according to the Table below, but not more than USD 15,000 equivalent in the relevant currency for one beneficiary per event.

Enterprise Category	Initial percentage co-participation of the Agency	Initial percentage co-participation of the Beneficiary
1st Category Enterprise	60	40
2nd Category Enterprise	70	30
3rd Category Enterprise	80	20
4th Category Enterprise	90	10

 

 

• The amount of the beneficiary’s co-participation increases by 5% in case of second and each subsequent participation in the international event by the same company during one calendar year. (does not apply to enterprises of the 4th size category )

 

 

 

 

 

Co-Financing Model for Showrooms

 

• Beneficiary must be eligible  to participate at the international event ( according to  the agency’s Eligibility criteria)
• Company is evaluated based on the selection criteria, where it is awarded with an appropriate score
• Qualified applicants with the highest scores will be selected for participation in the event
• Based on the given s core the following co-financing model is applied accordingly
  • The percentage of the Agency’s co-financing may be between 35 and 50 per cent according to the Table below, but not more than USD 5000 equivalent in the relevant currency for one beneficiary per event.

     

Participation in the showroom	Initial percentage co-participation of the Agency	Initial percentage co-participation of the Beneficiary
1st Participation	50	50
2nd Participation	45	55
3rd Participation	40	60
4th and each subsequent participation	35	65

 

• • The amount of the beneficiary’s co-participation increases by 5% in case of second and each subsequent participation in the events carried out by the same company during International Fashion Weeks within one calendar year. The percentage of the Agency’s co-financing within one event may not exceed 50 percent of the fee for participation in the event

 

Preparing a company for Export

Agency’s business developement support programs subsidise company’s bank loans, while EG’s credit guarantee mechanism supports companies that lack collateral to secure their loans.  

 

INDUSTRIAL COMPONENT offers support mechanisms tailored to the specific stages of development and financial needs of a business.

CREDIT

In terms of the commercial banks

• The 11% co-financing of bank loan interest rate for the first 36 months
• Minimum loan volume – GEL 50 000 
• Maximum loan volume – GEL 10 000 000

Program conditions

• The end product should be on the program priority list approved by the Georgian Government

 

• • paper and paperboard
  • wood processing
  • metal products
  • chemical manufacturing
  • mechanical engineering
  • textile production
  • electrical equipment
  • rubber & plastics
• New enterprise should be put into operation within 36 months from the loan issuance date
• Existing enterprise should start production within 24 months from the loan issuance date

LEASING

In terms of the leasing companies

• The 13.5% co-financing of the annual interest rate for the first 36 months;
• The initial value  of the project should be at least GEL 50 000 while the maximum should not exceed GEL 10 000 000 

Program conditions

• The end  product should be on the program priority sectors list approved by the Georgian Government
  • paper and paperboard
  • wood processing
  • metal products
  • chemical manufacturing
  • mechanical engineering
  • textile production
  • electrical equipment
  • rubber & plastics
• New enterprise should be put into operation within 36 months from obtaining the lease
• Existing enterprise should be put into operation within 24 months from obtaining the lease

 

CREDIT GUARANTEE MECHANISM aims to improve access to finance for small and medium size businesses, facilitate lending and ensure inclusive economic growth.

TERMS

·  Credit  Guarantee Scheme will be based on Portfolio Guarantees and the loan will be evaluated by the Commercial Bank/Microfinance organization

·  A security provided by the Agency for up to 90% of the principal amount for each loan disbursed by commercial bank within the framework of the program. Guarantee shall be issued for each bank participating in the program for up to 35% of the disbursed loan portfolio within this program, at any moment

·  In the case of a commercial bank minimum loan volume – GEL 50 000, while maximum loan volume – GEL 5 000 000

·  In the case of a microfinance organization minimum loan volume – GEL 20 000, while maximum loan volume – GEL5 000 000

·  The maximum loan warranty period is 10 years

Within the following directions, the loan will be available:

• Production and processing
• Hotel industry
• Electricity generation
• Educational activities
• Training centers
• Export of services
• High-tech medical laboratories

CRITERIA

• Beneficiary of the program must be an entrepreneur who meets the enterprise of the 3rd or 4th category in accordance with the Law of Georgia on Accounting, Reporting and Auditing, only in its income component. Which can be checked through www.reportal.ge
• Total loan liabilities should not exceed GEL 12 000 000 at the time of joining the program
• Under the program, the beneficiary is entitled to use several loans if the total volume of loans issued under the program does not exceed GEL 5 000 000
• In agreement with the beneficiary, the commercial bank / microfinance organization is authorized to fully or partially refuse the credit guarantee and / or, if the beneficiary wishes, the commercial bank is authorized to fully or partially replace the credit guarantee with other collateral
• Commercial banks are obliged not to increase the interest rate when restructuring the loan