Quarterly Legislative Review (July – September 2025). New Lending Rules and Expansion of State Support
- State Program “Produce in Georgia”: More Subsidies for Manufacturing and IT
- New Support Measures
- New Areas Eligible for Support
- Strict Lending Rules: Restrictions on Foreign Currency Loans
- Essence of the Regulation
- Support for Micro and Small Entrepreneurship
- Action Steps
- Loans for Individuals (Georgian Citizens) and Legal Entities Registered in Georgia up to 750,000 GEL May Be Issued Only in GEL, with Certain Exceptions
- Your Next Step
- Contact our lawyer for more details
We present to your attention an overview of key legislative changes in Georgia for the third quarter of 2025.
The new regulations significantly affect the financial sector and government business support programs, offering new opportunities while introducing stricter currency controls.
State Program “Produce in Georgia”: More Subsidies for Manufacturing and IT
Starting September 1, the state program “Produce in Georgia” (government support for industrial production and business) is being expanded.
New Support Measures
The program now provides co-financing of interest on bank loans and leasing:
| Type of Financing | Reimbursement from the NBG (National Bank of Georgia) | Additional Reimbursement under the Program | Total Support |
| Loan (for the full term) |
3% | +2% | 5% |
|
Leasing |
1% | +2% | 3% |
New Areas Eligible for Support
- “Green” initiatives (ecology, sustainable development)
- Digitalization and IT development
- R&D (research and development activities)
- Mountain regions and agrotourism
Strict Lending Rules: Restrictions on Foreign Currency Loans
Starting August 1, amendments came into force introducing significant restrictions on issuing loans in foreign currencies.
Essence of the Regulation
Loans issued in Georgia for amounts up to 750,000 GEL to Georgian citizens and resident legal entities must be granted in GEL only.
When the Restrictions Do NOT Apply (Exceptions):
These rules do not apply in the following cases:
- Large obligations: The borrower’s total liabilities to a single creditor exceed 750,000 GEL (liabilities secured by cash or guarantees are not included).
- Non-residents: Loans/credits are issued to individuals who are not Georgian citizens and/or to legal entities not registered in Georgia.
- Foreign currency income: The borrower earns sufficient income in the loan currency (the income must be independent of currency fluctuations and linked to a country where that currency is the national one).
- Foreign currency collateral: The loan/credit is fully secured by funds in the same currency.
- Refinancing/restructuring: Conducted in the same currency without increasing the amount of existing liabilities.
Support for Micro and Small Entrepreneurship
Starting September 1, the list of economic activities eligible under the program has been expanded — now it includes food production, certain types of construction work, and cultivation of annual crops.
Key Conditions (Limits):
- Income limit: Entrepreneurial entity’s income up to 500,000 GEL for the previous year.
- Shareholder income limit: The founder/shareholder’s income does not exceed 100,000 GEL.
- Financial integrity: No outstanding debt to the state budget and no registration in the debtor’s registry.
Program Beneficiaries Receive:
- Full or partial interest rate financing on loans.
- Consulting services with co-financing (up to 25,000 GEL).
- Credit guarantee covering up to 80% of the loan.
Action Steps
- The entrepreneur applies to a consultation center and undergoes a diagnostic assessment.
- Gains access to services with government support.
- Support period: up to 5 years.
- Loan amount: from 20,000 to 50,000 GEL.
- Priority given to: businesses in mountain regions and women’s entrepreneurship.
Full interest rate financing on loans is provided for:
- New entrepreneurs with income up to 30,000 GEL or whose business was registered less than one year ago.
- Women entrepreneurs.
- Entrepreneurs from high-mountain regions.
All other program participants will be able to obtain a loan with partial interest rate financing at 8.5%.
Loans for Individuals (Georgian Citizens) and Legal Entities Registered in Georgia up to 750,000 GEL May Be Issued Only in GEL, with Certain Exceptions
Starting August 1, amendments came into force stipulating that citizens with income in GEL may obtain any type of loan from credit institutions — including commercial banks, microbanks, non-bank deposit institutions (credit unions), microfinance organizations, lending entities (creditors), and payment service providers — only in GEL for amounts up to 750,000 GEL.
The New Regulations Do NOT Apply If:
- The borrower’s total liabilities to a single creditor exceed 750,000 GEL, with liabilities secured by cash and/or guarantees excluded from the calculation.
- The loan or bank credit is issued to an individual who is not a Georgian citizen and/or a legal entity not registered in Georgia.
- The loan or credit is fully secured by funds in the same currency.
- The borrower earns sufficient income in the currency of the loan; such income is considered valid if it is not affected by currency fluctuations and is linked to a country where that currency is the national one. For business loans, the debt service coverage ratio must be fully supported by income in the same currency.
- The loan or bank credit is being refinanced, significantly modified, or restructured in the same currency, provided that the borrower’s existing debt obligations are not increased.
Your Next Step
The new government support programs create opportunities to reduce operating costs, but the strict foreign currency lending rules require an immediate audit of credit portfolios.
To quickly assess how these changes affect your business and what subsidies you may qualify for, please contact our experts in Tbilisi.
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Author: Nino Zautashvili
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