Businesses Can Now Access Loans at 0.1% Interest to Recover From Shelling Damage

New Support Program for Small and Medium Enterprises

According to Главком: Starting July 1, entrepreneurs in Ukraine whose property has been damaged or destroyed by Russian attacks will be eligible for subsidized loans to aid in their recovery. This initiative was announced by Ukrainian Prime Minister Yulia Svyrydenko as part of a broader effort to bolster the private sector amid ongoing hostilities. The loans fall under the existing state-backed 'Affordable Loans 5-7-9%' program, which has been operational since February 2020.

For the first two years, these recovery loans carry an interest rate of just 0.1% annually. After that period, rates will increase to 5%, 7%, or 9%, depending on the business category and the number of jobs created. The maximum loan amount is set at 150 million Ukrainian hryvnias. Importantly, funds borrowed under this recovery scheme will not count toward the overall cap on state support that a business can receive.

Lending Statistics and Complementary Programs

As of early June, Ukrainian entrepreneurs have already secured 150,900 loans worth a total of 531.6 billion hryvnias. Since the start of 2026, businesses have taken out 16,400 loans amounting to 71.6 billion hryvnias. Beyond loans, the government also offers grants of up to 16 million hryvnias for purchasing production equipment, and the 'Point of Support' program, which compensates employee salaries during forced downtime caused by shelling. Additionally, war risk insurance mechanisms are now available.

In a related infrastructure recovery effort, the Luwr business center in Lukyanivka-severely damaged by a Russian attack-will undergo partial dismantling, as several floors of the building have been heavily compromised.

The introduction of this new support mechanism for small and medium enterprises in Ukraine marks a significant step in the country's post-war economic recovery. Subsidized loans can greatly ease the financial burden on business owners who have suffered losses from shelling, helping them resume operations. The 'Affordable Loans 5-7-9%' program has already proven to be an effective tool for business support, making these new initiatives a potential catalyst for reviving economic activity in affected regions.

As the government continues to support the recovery of businesses affected by the conflict, it's worth noting that Ukrainian enterprises have already benefited significantly from the 5-7-9 loan initiative, securing over 500 billion hryvnias. This financial backing illustrates the growing momentum behind state efforts to revitalize the private sector amidst ongoing challenges.