Emergency Support Program for Small and Medium-Sized Businesses
The Ukrainian government has launched an emergency support program for small and medium-sized businesses impacted by the ongoing energy crisis. This initiative, announced by First Deputy Prime Minister and Minister of Economy Yuliia Svyrydenko, offers direct cash grants and preferential loans to eligible individual entrepreneurs (FOPs of groups 2-3) operating in critical sectors.
The announcement was made by First Deputy Prime Minister and Minister of Economy Yuliia Svyrydenko.
The aid is targeted at entrepreneurs working in essential fields, including:
- Pharmacies
- Grocery stores
- Cafes
- Bakeries
- Other vital establishments
Eligible businesses can receive a one-time grant ranging from 7,500 to 15,000 hryvnias. A key requirement for receiving funds is having at least one officially registered employee, with the final grant amount depending on the size of the workforce.
The application process will be simplified through the Diia portal, with partner banks verifying applications. The State Employment Service will disburse the funds. Recipients may use the money for specific purposes, such as:
- Purchasing or repairing energy equipment
- Buying fuel for generators
- Paying electricity bills
Preferential Lending Scheme
The program also includes a preferential lending component. Nearly 50 partner banks will provide loans under the government's "5-7-9" program for terms of up to three years, with maximum amounts reaching 10 million hryvnias. Targeted loans for generators and batteries will be issued at a 0% annual interest rate, with the state covering the difference in interest costs through the Entrepreneurship Development Fund.
This support comes as Ukrainian businesses face severe strain from widespread power outages and infrastructure damage. The launch of this program is a crucial step in assisting entrepreneurs who have suffered from the energy crisis. The combination of grants and interest-free loans is designed to alleviate the financial burden on small and medium-sized businesses, which are vital for the country's economic stability amid current challenges. Successful implementation could serve as a model for future initiatives aimed at supporting vulnerable sectors of the economy.