Another step to launch a loan program at 5-7-9% interest to support micro and small businesses for which there has been budgeted funding worth UAH 2 billion has been taken in Ukraine. Such an opportunity has been provided today when the Parliament supported as whole by a total of 261 votes Government Bill No. 2589 on Amendments to the Law of Ukraine "On the State Budget of Ukraine for 2020" in the part of the Entrepreneurship Development Fund.

"The state program will allow the Government to provide available loans at a reduced rate for starting a business, to create an additional 90,000 legal jobs in the first year of the program’s effect. But the main thing is that the program will enable Ukrainians to live out their business dream here in Ukraine instead of seeking a better life abroad," commented the approved draft bill Prime Minister of Ukraine Oleksiy Honcharuk.

The Entrepreneurship Development Fund will render support to micro and small business entities in two directions:

1) cheaper loans by means of compensation of interest rates to 5, 7 and 9% per annum on national currency loans. The percentage depends on the size and type of business:

• 5% p.a. – when having the revenue under UAH 25 million and at least 2 jobs created;
• 7% p.a. - for business with revenues up to UAH 25 million, which does not create new jobs, but per each new employee the rate will be reduced by 0.5%;
• 9% p.a. - for business with revenues up to 50 million UAH;

2) providing partial guarantees on loans to micro and small businesses, if their collateralization is insufficient.

The procedure for providing support will be determined in the near future by a decision of the Cabinet of Ministers of Ukraine.

More about the program at http://smeprogram.guf.gov.ua/ in Ukrainian.