The Cabinet of Ministers of Ukraine adopted a new resolution that improves the mechanisms of providing state financial support for micro, small and medium-sized businesses through such programs as “Affordable loans 5-7-9%”, “Affordable financial leasing 5-7-9%” and “Affordable factoring”. About this reported press service of the Ministry of Finance.
According to this resolution, businesses will be able to take advantage of lower interest rates on loans by combining state support with partnership programs offered by authorized banks. This will create additional opportunities for entrepreneurs, especially in the context of access to favorable financing.
The mechanism for providing guarantees to authorized banks through the Entrepreneurship Development Fund (FDF) has also been improved. This will simplify the lending procedure and allow banks to cooperate more effectively with enterprises.
From December 1, 2024, the World Bank’s environmental and social standards will be added to the “5-7-9% Available Loans” program, which will become mandatory for lending to agricultural enterprises. This will contribute to the development of sustainable business and increase environmental responsibility.
In addition, the resolution provides for the strengthening of international cooperation to attract additional financial resources to support Ukrainian entrepreneurs. The government continues to cooperate with the World Bank, the International Bank for Reconstruction and Development, the International Development Association and the IMF. One of the priorities is to coordinate state support for small and medium-sized businesses with the country’s budgetary capabilities.
The Ministry of Finance reminded that the program “Affordable loans 5-7-9%” is implemented through the Entrepreneurship Development Fund, which cooperates with 46 authorized banks. The program, launched in February 2020, is intended for enterprises with an annual revenue of up to UAH 50 million.
Within the framework of this program, entrepreneurs can use loans for the purchase of equipment, modernization of production facilities, construction or reconstruction of facilities, as well as replenishment of working capital (up to 25% of the cost of the investment project).
Interest rates under the program are distributed as follows:
- 5% per annum – for businesses with revenue of up to UAH 25 million, provided that at least two jobs are created;
- 7% per annum – for businesses with revenue of up to UAH 25 million, without the requirement to create new jobs;
- 9% per annum – for businesses with an annual revenue of up to UAH 50 million.
