5-7-9% Program: Startups Can Now Get a Loan Without Collateral.

The 'Affordable Loans 5-7-9%' program is gaining momentum. The Ministry of Finance of Ukraine reports that as of March 2, in the first month of the state program, 97 loans amounting to 66.11 million hryvnias have been issued. The number of loan applications is rapidly increasing, with just the last week of February seeing an increase of almost one and a half times.

According to bankers and representatives of the Ministry of Finance, the demand for affordable loans will continue to grow, as from March 2, a mechanism for providing credit guarantees to small businesses that do not have sufficient assets for collateral when taking a loan has been launched.

“Credit for startups involves completely new procedures, completely new approaches. Many banks are currently thinking about how to implement such approaches. For example, Ukreximbank has developed a procedure for analyzing startups. Now that the guarantee mechanism has been connected to the program, we are ready to accept applications from such borrowers,” said Mykhailo Medko, the director of the small and medium-sized enterprise department of Ukreximbank.

The 5-7-9 program provides for affordable loans for the purchase of fixed assets up to 1.5 million hryvnias for a term of up to 5 years. The launch of the credit guarantee mechanism opens access to such financing even for startups that are at the initial stages.

Overall, the 'Affordable Loans 5-7-9%' program is receiving significant interest from entrepreneurs, indicating the relevance and necessity of this type of financing for the development of small and medium-sized businesses in Ukraine.