The first month of the state program "Affordable loan at 5-7-9%" has passed. As of March 2, under the program, 97 loans to the tune of UAH 66.11 million were issued. Dozens of entrepreneurs have been able to develop the business they had launched before the program’s start.
The program proved to be very popular. Thus, only during the last week of February the number of applications to participate in the program increased by 145%: from 6190 (as of 20 February, 2020) up to 15190 (as of 26 February, 2020). The presentation in the regions promoted the program and contributed to its popularity: it was officially presented to entrepreneurs of Kharkiv, Zaporizhia, Ternopil, Vinnytsia and Odesa.
For the first month, the Entrepreneurship Development Fund, which implements the program, has concluded cooperation agreements with state-owned banks such as Ukreximbank, Privatbank, Oschadbank and Ukrgasbank, as well as with commercial PUMB and Lviv banks. In addition, Alfa-Bank, Credobank and OTP Bank were selected as the authorized banks, with whom the cooperation was supported by the Board of the Fund. Agreements with these banks will be concluded in the near future.
The first partial loan guarantee agreements have already been concluded as well as - with Ukrgasbank and Privatbank. This is a new element of "Affordable Loans at 5-7-9%" program, which since the beginning of March has allowed for expanding the range of entrepreneurs who will be eligible to take advantage of the program.
The Entrepreneurship Development Fund is actively working to further improve the program. The Fund took into account the requests and proposals of the authorized banks and prepared on their basis amendments to the Procedure of providing financial state support to micro and small business entities, approved by the Cabinet of Ministers Resolution No. 28 of January 24, 2020. These changes include, in particular, an increase in the maximum loan amount of up to UAH 2 million, an extension of the investment purposes for which loans can be provided, the revision of the interest rate calculation and an increase in the maximum amount of payment under the guarantee of the Fund.
More details about the program "Affordable loans at 5-7-9%" on the website 5-7-9.gov.ua.