• Українською
  • Cabinet of Ministers approves changes to state program "Affordable Loans at 5-7-9%" to support small and medium-sized businesses amid quarantine
    Ministry of Finance of Ukraine, posted 29 December 2020 10:27

    On December 28, 2020, the Government adopted a Resolution "On Amendments to the Resolution of the Cabinet of Ministers of Ukraine of January 24, 2020, № 28", by which the Ministry of Finance proposed a number of measures aimed at additional support for small and medium businesses against the background of quarantine.

    It should be noted that on November 11, 2020, the Cabinet of Ministers decided to further intensify anti-epidemic measures, in particular in January 2021.

    As a result, small businesses, including micro-businesses, and medium-sized businesses during the quarantine period need more support by improving the state program "Affordable Loans at 5-7-9%".

    The amended program provides for measures that are a universal and effective mechanism for lending to micro and small businesses with state financial support to businesses, regardless of their field of activity.

    The adopted government decision introduces the following changes to the state program "Affordable Loans at 5-7-9%":

    • the program applies to medium-sized businesses with an annual income of up to EUR 20 million;
    • loan terms are being liberalized: the term of the working capital loan has been increased to 3 years; deferred loan repayment may be up to 12 months; the first contribution to the implementation of the investment project decreases (10% for existing businesses and 15% for startups);
    • the conditions for refinancing loans in terms of ensuring the preservation of the payroll are reduced - a reduction of up to 50%, the amount of staff - up to 50% (as of March 1, 2020);
    • for working capital loans, interest compensation of up to 0% per annum for the period of quarantine and restrictive measures is fixed, and after the cancellation of restrictions their compensation continues at 3% per annum, while for refinancing loans interest compensation of up to 3% per annum after 31.03.2021 is set;
    • the issue of combining state support under the program "Affordable Loans at 5-7-9%" with state support, which can be provided by local state administrations and local governments on the basis of regional and local programs for small and medium enterprises at the expense of local resources.

    It should be noted that as of December 28, 2020, the number of applications for participation in the Program has already reached 58,374 to the tune of UAH 69 billion. Overall 7,158 loan agreements worth a total of UAH 16.5 billion were signed during the entire period of effect of the Program.

    The Entrepreneurship Development Fund has concluded cooperation agreements with 23 banks.