Deadline to Apply for the 3rd Program for Mitigating Economic Effects of COVID-19 is June 30

The deadline for submitting applications for the third program aimed at mitigating the economic effects of coronavirus is June 30. Small and medium-sized enterprises are informed that the deadline for participation applications in the third program is approaching its end.

The purpose of this program is to assist businesses that meet the established criteria and are considered small and medium-sized enterprises in Armenia. This assistance seeks to mitigate risks associated with their current liquidity as a result of the spread of coronavirus.

Eligible businesses can benefit from favorable credit and tax histories (with assistance in the form of loans up to a maximum of 50 million AMD, depending on their operating size) and must operate in the following sectors: manufacturing, catering and public food services, transportation and warehousing, tourism services, other service sectors, healthcare, preschool education (private kindergartens), sports activities (sports clubs, swimming pools), and other activities related to entertainment and recreation (excluding computer game organization and internet club activities), construction of buildings, civil engineering, and specialized construction activities.

The main conditions for participation are: a minimum turnover of 24 million AMD and a maximum of 500 million AMD in 2019, with no individual quarterly turnover exceeding 70% of that year's total turnover. The maximum loan amount is 50 million AMD, with interest rates set at 0% for the first two years and 12% in the third year. Companies must have a favorable credit history, meaning no outstanding credit obligations for more than 30 days in the 12 months preceding the loan application date, and a positive tax history, meaning no administrative processes initiated for the collection of unpaid tax obligations in the 365 days prior to the application date, or no overdue tax obligations as of December 31, 2019 (in the latter case, a fee of 1% of the actually allocated funds is paid).

Applications should be submitted to the Ministry of Economy's Investment Support Center by June 30 at www.isc.am. For further information, you can call the hotline at 8-105.

Details about the third program can be found through the following links: Government of Armenia resolution on approving the third program for mitigating economic effects of COVID-19, March 2020, No. 357-L.

As of now, a total of 1,684 applications have been submitted by businesses wishing to benefit from the third program, with a total requested amount of 17,085.20 million AMD, and 859 applications meeting the criteria (including those not fully approved and rejected) totaling 9,480.00 million AMD. By June 11, 637 contracts were signed for a total of 7,355.90 million AMD.

Applications meeting the criteria by sector and amount are as follows: Manufacturing - 320 applications, amounting to 3,750.20 million AMD; Catering and public food services - 221 applications, amounting to 2,188.20 million AMD; Transportation and warehousing - 70 applications, amounting to 714.50 million AMD; Tourism services - 44 applications, amounting to 493.60 million AMD; Other service sectors - 46 applications, amounting to 287.10 million AMD; Healthcare - 41 applications, amounting to 461.60 million AMD; Preschool education (private kindergartens) - 6 applications, amounting to 46.60 million AMD; Sports activities - 5 applications, amounting to 61.60 million AMD; Other recreational and entertainment activities - 2 applications, amounting to 30.40 million AMD; Construction - 69 applications, amounting to 1,158.30 million AMD.