Financial and legal measures to support small and medium-sized businesses in the context of pandemic turbulence

Moscow Polytechnic University, 38 Bolshaya Semyonovskaya Str., 107023, Moscow, Russia

^* Corresponding author: aminovii@mail.ru

Abstract

The article reveals the consequences of the coronavirus crisis for business activity in Russia. The article considers certain financial and legal measures to prevent economic losses for small and medium-sized enterprises (SMEs) taken by the Russian authorities in the context of a long and devastating COVID-19 pandemic. It was revealed that one of the effective financial and legal mechanisms for overcoming a difficult socioeconomic situation is the National Guarantee System for Supporting Small and Medium-Sized Businesses (NGS) created in the Russian Federation back in 2014 and intensified its comprehensive activities in the context of pandemic turbulence. The directions and principles of NGS activity are analyzed. Additional measures to support SMEs have been disclosed due to announcement of another lockdown in Russia in the fall of 2021. The directions for further improvement of the system of state support for small and medium-sized businesses are outlined, such as the renewal of credits at zero rates on salaries, the establishment of a “grace” period and preferential interest rates for credit repayment, tax debts cancellation, subsidizing loans subject to the hiring of new personnel, compensation of rent, taxes and comprehensive rehabilitation programs. It is concluded that it is necessary to take measures to minimize the threat of declaring lockdowns in the future.