The government has launched loans for businesses at 5-7-9%: who can apply.

The new program provides loans to small entrepreneurs

The official launch of the program took place with the participation of Prime Minister Oleksiy Honcharuk, Finance Minister Oksana Markarova, and other government representatives. According to this program, businesses with an annual turnover of up to 50 million UAH will be able to receive loans at a record low interest rate - from 9% to 5% depending on the size of the business and the number of new jobs created. The maximum loan amount is 1.5 million UAH, and the maximum term is 5 years. The targeted purpose of the loans according to the program is the purchase of fixed assets, as well as repair and modernization of fixed assets.

Opportunities for young businesses

This program opens up opportunities for newly established businesses for the first time - they will also be able to obtain loans at such a low interest rate. We will provide detailed information about the conditions for obtaining affordable loans in the near future.

Introducing the program, Prime Minister of Ukraine Oleksiy Honcharuk said that this program is for those who have long dreamed of their small business but have not dared to do so for various reasons:

“The government is working on reducing the cost of loans, and we already have certain successes. Over the last six months, the cost of loans in banks has significantly decreased, but for large-scale changes, the government has decided to compensate part of the interest rate in such a way that a person can actually receive a loan at 5-7-9 percent depending on how many jobs the new business will create. For us, it is important to provide entrepreneurs with more resources, more freedom, and more opportunities.”

Financing for business development

This year, the government has already allocated 2 billion UAH for the program. In a year, this will allow issuing over 50,000 affordable loans, creating up to 90,000 new jobs, and attracting about 2 billion UAH in domestic investment in the small business sector. 1.5 billion UAH of this amount will be used specifically for compensating interest rates, while 0.5 billion UAH will be allocated for providing loan guarantees to borrowers who do not have the required collateral.

Deputy Chairman of the Management Board of Ukrgazbank (Kyiv, the bank is state-owned) Yevhen Metzger reported during the program presentation that this bank has already issued the first loan amounting to 1.5 million UAH: 'On Friday, we managed to review one case - this is a Vinnytsia entrepreneur and today, while we are meeting, he received the first loan of 1.5 million UAH to open a new small supermarket.' Ukrgazbank, as reported, was the first to join the 5-7-9% program - this took place on January 30. As of February 4, all four state banks, including Ukrgazbank, are participating in the program - they signed agreements with the Entrepreneurship Development Fund to participate in the implementation of the program 'Affordable loans 5-7-9%.'

The new government program allows small entrepreneurs to obtain loans at low interest rates, contributing to the creation of new jobs and the development of business in Ukraine.