New Energy Support Program for Businesses
The Ukrainian government has introduced a new support initiative to help businesses withstand energy challenges. This program offers non-repayable grants for sole proprietors (FOPs) and provides preferential loans with a 0% annual interest rate. Entrepreneurs can begin submitting applications for this assistance starting November 19, 2023. Applications are processed online via the Diia portal or through partner banks.
Prime Minister Yuliia Svyrydenko stated that small and medium-sized businesses in socially vital sectors are eligible for this state support. These sectors include:
- pharmacies
- grocery stores
- bakeries
- cafes
- workshops
Sole proprietors (FOPs) of groups 2 and 3, who employ at least one worker, can receive a one-time, non-repayable financial grant ranging from 7,500 to 15,000 hryvnias. The grant amount is determined based on the number of employees.
Funds received through this program can be used for:
- purchasing or repairing generators
- buying batteries
- acquiring inverters
- installing solar panels
- purchasing fuel for generators
- paying for electricity to support autonomous operation
The program operates on principles similar to the 'Own Business' grant scheme. Applications for assistance are submitted under the 'Entrepreneurship' category on the 'Assistance for FOP Energy Resilience' service page. All data is verified automatically, and funds are credited to a Diia.Card account through five designated banks: PrivatBank, Sense Bank, Bank Credit Dnipro, A-Bank, and monobank.
Preferential Business Lending
In addition to grants, micro, small, and medium-sized businesses can access preferential loans at 0% annual interest under the 'Affordable Loans 5-7-9' program, for amounts up to 10 million hryvnias. The state, via the Entrepreneurship Development Fund, compensates banks for the difference in the interest rate. These loans are available for up to 3 years and can be used to purchase power generation equipment, including cogeneration units, and diesel, gasoline, or gas generators. To qualify, businesses must meet the criteria of the 'Affordable Loans 5-7-9' program and apply through a partner bank. Applications for these energy loans are being prioritized for review. Initially, 17 partner banks have begun accepting applications, with lending ultimately available through 43 banks nationwide.
The launch of this new energy support program is a crucial step in strengthening Ukraine's economy, particularly amid the growing challenges posed by the ongoing energy crisis.
This initiative aims to improve the financial resilience of small and medium-sized businesses, which can positively impact employment and social stability in the country. Supporting entrepreneurs in acquiring energy-efficient equipment will also help reduce energy costs and encourage a shift toward more sustainable business practices. This support is part of broader efforts to help the private sector adapt to wartime conditions and infrastructure disruptions.