Startup capital: the authorities are rapidly cutting grants to small businesses
The granting of grants to small and medium-sized businesses (SMEs) collapsed by 53% in the first quarter of 2026, Izvestia found out. In three years, the drop was 84%. This type of government assistance is important for startups and companies, as it allows them to receive non-refundable financing, buy equipment, and cover development costs. A further reduction in such support may lead to a decrease in business activity, an increase in debt burden and a slowdown in economic development, experts warn. How it can be optimized is in the Izvestia article.
How many grants were given to small and medium-sized businesses
In the first quarter of 2026, almost 92.9 thousand businesses received state support. Compared to last year, their number decreased by 6%. This is stated in a study by the Rodionoff Group consulting and legal agency for technology project support, which Izvestia has.
The situation has changed the most with direct financial support, which is provided without guarantees (grants and subsidies, leasing, investments in capital, property and innovation support). Its volume has almost doubled in a year, from 9.6 billion to 5.5 billion rubles.
As stated in the study, a sharp drop occurred in the provision of grants — by 53%, to 3.1 billion rubles. If such rates of decline continue, then this type of assistance as a massive tool for supporting SMEs will cease to exist in its current form after 18 months, the materials say.
A grant is a targeted non—refundable payment from the state. Money is allocated for specific purposes, you need to apply and pass a competition, a business plan or project description is required, and you need to account for the funds spent.
The issuance of loans for the year also dropped (by 19%). And there were no investments in capital during this period at all, although in 2025 there were 43 recipients.
Izvestia sent a request to the Ministry of Energy with a request to explain the reasons for this trend. In 2025-2030, the authorities will allocate 329.5 billion rubles from the state treasury for the federal project "Small and medium-sized entrepreneurship and support for individual entrepreneurship initiatives." This is 21% less than the amount of funds from the federal budget included in the passport of the national project for 2019-2024 (416.2 billion).
How important are grants for SMEs
In conditions of economic instability, the state is forced to redistribute resources, and supporting SMEs in the form of direct financial support measures is often not a priority, explained Alexey Khizhnyak, GR Director of Mikhailov and Partners Group. In order to increase the efficiency of spending funds, the authorities complicate the conditions for receiving this type of assistance, which cuts off some entrepreneurs.
The volume of loans is falling due to the fact that the government is reviewing and optimizing budget expenditures against the background of budget deficits, Ekaterina Kosareva, managing partner of the VMT Consult agency, added.
However, grants are important for SMEs, they allow them to launch a business without a debt burden, provide an opportunity to test new ideas, introduce innovations, increase the sustainability of companies at the start, and also stimulate job creation, said Alexey Khizhnyak. For many entrepreneurs, this type of assistance is the only chance to start a business or take it to a new level, the expert believes.
Grants are mostly awarded to companies that work closely with higher education institutions and the academic environment. Or those who are engaged in scientific research and development themselves, said Alexey Begaev, founder of the Insek group of companies. This area needs support.
An alternative to grants can be targeted financing of orders in the most popular areas, the expert believes.
Many entrepreneurs are intimidated by bureaucracy and strict accountability. However, government support also in many cases serves as a green signal for investors to participate in the project, Ekaterina Kosareva noted. Due to the decrease in such assistance, investors may also begin to refuse to invest in startups from non-priority industries, she warned.
Can grants disappear
If the pace of funding cuts continues, grants may indeed cease to be a massive tool, Alexey Khizhnyak admitted. Many regions are already experiencing a shortage of funds for these purposes.
— Grants are a key tool for supporting SMEs, especially in the context of economic turbulence. Their disappearance will lead to a decrease in business activity, an increase in debt burden and a slowdown in economic development. It is important for the state to seek a balance between the efficiency of spending and maintaining mass access to support for small and medium—sized businesses," the expert noted.
It is necessary to change the principles of grant programs: a clear understanding of what, to whom and why funds are allocated, focus on industries that are already showing growth or have real development potential, work not on formal KPIs, but on the quality of projects, says the chairman of the Committee on Precious, Non-ferrous, Rare Earth Metals and Precious stones of the Moscow branch.Business Russia" by Alexey Gavrilov.
All this, in his opinion, will help build a more balanced system that will really contribute to the development of the economy, and not just close holes in the budgets of companies.
Nevertheless, in the next two to three years, the volume of grants may decrease to a minimum until the economy enters the growth phase, believes Alexey Begaev from Insek Group of Companies.
If the provision of grants to young entrepreneurs and similar tools to support innovative projects stops without a commensurate replacement, then startup activity at universities may be reduced to a minimum, said Stepan Zemtsov, head of the Development Economics Research Laboratory at the Presidential Academy. But he stresses: This is an important area.
"Out of 10 recipients, only one will become a successful entrepreneur, but taxes from his company will cover the cost of grants many times in 5-10 years," he said.
At the same time, government support for small businesses should not be a condition for their creation and development, says Dmitry Zavyalov, Dean of the Higher School of Economics and Business at Plekhanov Russian University of Economics. According to him, it is rather an aid to overcome certain economic or systemic difficulties.
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