The final stage of selection for concessional loans to Ulaanbaatar micro-enterprises that manufacture and export finished goods from agricultural raw materials is under way. Seven shortlisted businesses are now presenting their projects to the Project Selection Committee.

Under Order No. A/320 (2026) of the Minister of Food, Agriculture and Light Industry, the Small and Medium Enterprise Development Fund is authorized to lend 2.4 billion MNT through the program. Enterprises dealing in meat and meat products, and in wool and cashmere products, are excluded.

Applications were accepted through an online system from September 2 to October 1. Of the 66 enterprises that registered, 41 submitted finalized applications. Together they requested about 10 billion MNT, more than four times the funds available. Of the 41 applicants, 73.2 percent, or about 30 businesses, asked for between 200 and 300 million MNT. The maximum amount each business can receive is set according to its sales revenue.

The selection ran in three stages. The first checked that project documentation was complete and made a preliminary assessment, and 15 enterprises passed. The second was a detailed on-site evaluation, after which seven remained, about one in six of the original applicants. The final stage will decide which of them receive loans.

The program targets value-added processing rather than raw material exports. Mongolia’s agriculture sector has long been dominated by raw material sales, and policymakers have said they want to diversify the economy beyond mining.