Changes to the program "Affordable loans 5-7-9%": Support for the Sowing Campaign and Promotion of Entrepreneurship

Changes to the program "Affordable loans 5-7-9%": support for the sowing campaign and activation of entrepreneurship

The Government, at the initiative of the President of Ukraine, has made several changes to the State program "Affordable loans 5-7-9%" to support agricultural producers to ensure the sowing campaign and support, activation of entrepreneurship during martial law.

The Ministry of Finance encourages businesses and banking institutions to actively join the implementation of innovations. This program is implemented by the Business Development Fund. The sole participant of the BDF is the Government of Ukraine represented by the Ministry of Finance of Ukraine, which coordinates all aspects of the Fund.

Thus, on March 12, 2022, the Resolution of the Cabinet of Ministers of Ukraine amended the State Program "Affordable loans 5-7-9%" with the expansion of support opportunities for business entities - agricultural producers, especially to ensure the financing of the sowing work.

The main innovations to the Program "Affordable loans 5-7-9%" to support agricultural producers:
 1. The program is extended to medium-sized enterprises with annual revenues up to EUR 50 million (previously it was EUR 20 million) and to large enterprises with annual revenues over EUR 50 million regardless of the number of employees.
 2. The maximum loan amount for all business entities was increased from UAH 50 million to UAH 60 million, taking into account a group of related companies.
 3. The interest rate is 0% per annum.
 4. Purpose of loan:
 ◦ investment loan for the purchase of agricultural equipment,
 ◦ loan for replenishment of working capital for the purchase of seeds, fertilizers, combustive-lubricating materials.
 5. Tenure of the loan - 6 months.
 6. Term for application for participation in the program - until May 31, 2022.
 7. Amount of the loan guarantee - 80% of the sum of the credit of the subject of micro, small and medium entrepreneurship (except for subjects of big entrepreneurship).

Also, on March 18, 2022, the Government made changes to the State Program "Affordable loans 5-7-9%" for support and activation of entrepreneurial activity during the period of martial law:
 1. The program is extended to medium-sized enterprises with annual revenues up to EUR 50 million (previously it was EUR 20 million) and to large enterprises with annual revenues over EUR 50 million regardless of the number of employees.
 2. The maximum loan amount for all business entities was increased from 50 million UAH to 60 million UAH, taking into account a group of related companies.
 3. Interest rate:
 ◦ 0% per annum during the period of martial law and one month after its termination;
 ◦ 5% per annum after the termination of the above period and up to the end of the loan term.
 4. Purpose of the loan:
 ◦ Investment loan for the acquisition of fixed assets,
 ◦ loan for replenishment of current assets for entrepreneurial activity.
 5. Tenure of the loan:
 ◦ investment loans - 5 years;
 ◦ working capital loans - 3 years.
 6. Term of application for participation in the program - during martial law.
 7. Amount of loan guarantee - 50% of the amount of credit of subjects of micro, small and medium entrepreneurship (except for subjects of big entrepreneurship).