Today virtually no business can do without borrowed funds.
The state is interested in a stable economy, therefore it tries to support subsidy programs and minimize credit rates for business.
The development of small and medium-sized businesses in the EU countries is well on the way, making up about 70-80% of the total number of enterprises.
For a comparative analysis, let's take Germany and Russia. In Germany, banks lend out
money at 3-4% per annum for 10-20 years, while the borrowers pay only interest in the first few years. There are certain conditions for taking out a loan. For example, the company must exist for at least 3 years to take a subloan of 100 000 EUR. Then you can take out a loan for a period of 5 years with an effective interest rate of 2.63% or for a period of 10 years with a rate of 2.89%.
In Russia the average loan rate for business ranges from 9.25% to 19%. Today, there is a soft-window facility: the rate is 6.5%, valid from 2018 to 2024. Essentially, the interest rate ranges from 7.75% to 8.5%, but a part of 1.5-2.5%.is propped up by the government. So far, only 70 enterprises have been chosen
to participate in this program.
In addition to concessional lending, there are also programs of state aid. In Germany, you can find more than 700 subsidy programs for small and medium-sized enterprises. The size of the non-repayable subsidies ranges from 25% to 80% of the costs of project implementation. The size of the subsidy depends on other factors such as the purpose of the project, the size of the company, the number of employees, turnover, and place of registration.