In June 2014 the Ministry of Economy and Sustainable Development of Georgia, together with the Ministry of Agriculture, launched a new government program “Produce in Georgia.” The program’s objective is to promote an entrepreneurial culture throughout the country by stimulating the establishment new enterprise and supporting the expansion of existing operations.
Enterprise Georgia is the key implementing partner of “Produce in Georgia” and is responsible for business support, export promotion and investment in Georgia sectors.
The Business division of the agency promotes entrepreneurial activity in Georgia by supporting entrepreneurs - assisting with the creation of new enterprises as well as the expansion and refurbishment of existing enterprises. The Export division promotes the export potential of the country by increasing the competitiveness of local products and the overall volume of goods directed towards international markets. The Invest division’s primary role is to attract, promote and develop direct foreign investment in Georgia. As the moderator between foreign investors and the Government of Georgia, the Invest division ensures access to updated information, provides an efficient means of communication with Government bodies, and serves as a “one-stop-shop,” supporting investors throughout the investment process.
ENTERPRISE GEORGIA – BUSINESS
As part of the Produce in Georgia program, the Business division promotes and supports the development of new enterprise as well as the expansion of existing operations by providing financial assistance to the entrepreneurial community. Some of the primary guidelines and conditions that apply to this assistance include:
- When launching a new enterprise, beneficiaries are required to start production within 24 months from the date of disbursement of the loan or signed lease agreement. For operators expanding an existing business entity, they must start production within 12 months after disbursement of the loan or signed lease agreement.
- Beneficiaries have access to co-financing of the interest accrued on the loan or lease issued by a commercial bank or leasing company during the first 24 months.
- Beneficiaries can obtain a collateral guarantee, up to 50% of the loan amount, for the first 48 months (no more than 2,500,000 GEL)
Qualified beneficiaries must:
- direct at least 80% of the loan to the principal and capital expenditures. No more than 20% of the loan should be used for working capital.
- provide an operational profile that details the production direction (primary goods and/or services) of the enterprise.
For beneficiaries seeking technical support linked to business development, the program provides access to:
- co-financing the cost of trainings associated with marketing, sales, business planning, and export development
- technical support linked to the identification, understanding and implementation of innovative and state-of-the-art technologies
There are a number of production directions (primary goods and/or services) that are supported by the Produce in Georgia program, as follows:
HOTEL INDUSTRY - REGIONAL DEVELOPMENT
Entrepreneurs engaged in the development of hotel properties in regional markets throughout Georgia have access to:
- co-financing of Franchise/Management agreements for the first 2 years (up to GEL 300,000 annually)
- co-financing of loans issued by a commercial bank for the first 24 months
- collateral guarantees up to 50% of the loan (No more than 250,000 GEL)
- co-financing of consulting services
- Beneficiaries must direct at least 80% of the loan to the principal and capital expenditures.
- The hotel must be located within Georgia, excluding Tbilisi and Batumi.
For beneficiaries seeking technical support linked to the regional development of hotel properties, the program provides access to:
- co-financing the cost of trainings associated with marketing, sales, and business planning.
- technical support linked to the identification, understanding and implementation of innovative and state-of-the-art technologies associated with hotel operations.
Other production directions that are eligible for support from Produce in Georgia include:
- Building Materials
- Mechanical Engineering
- Rubber & Plastics
- Paper and Paperboard
- Textile Production
- Wood Processing
- Electrical Equipment
- Food Products
- Metal Products
- Mineral Water
- Mineral Products
- Chemical Manufacturing
- Bitumen Products