Kiev launches a new small business support program

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Placed 7 million UAH to pay compensation in the budget

Photo: smallville.com.au

To reduce the negative impact of quarantine on small and medium-sized businesses, the city’s city government begins cooperation with the Entrepreneurship Development Fund. Thanks to this, Kyiv entrepreneurs will be able to obtain financing for the implementation of their investment projects at a cheaper rate of 13% per year.

Businessmen are promised a compensation of 50% of the nominal interest rate established by the loan agreement. Consequently, the interest rate for the borrower will be 6.5%.

Compensation will be paid from the funds provided in the city budget for financial and loan assistance for small and medium-sized businesses. In 2020 USD 7 million will be allocated for these purposes.

Today, Entrepreneurship Development Fund’s partner banks are: President Bank, Ukragsbank, Oschadbank, Creditwest Bank and Kredbank.

The participants of the program can be business entities – residents of Ukraine, registered in the city of Kiev, whose production facilities are wholly or partially located in the city of Kiev or in the territory of the Kyiv region and according to the provisions of the Commercial Code of Ukraine Small or medium-sized enterprises fall under the definition.

The loan amount cannot exceed the amount in national currency equal to 600 thousand euro. The maximum period for providing financial and credit support cannot exceed 6 years. The loan will be provided as per the clearly defined criteria of the project.

Summary PAYSPACE magazine

Recall that the Government of Ukraine has made changes to the state program “Available Loans 5-7-9%” for small and medium-sized businesses in relation to the spread of COVID-19 in the country.

Now, companies with annual income of up to 100 million can get financial support. The maximum loan amount has been increased to $ 3 million. Extended are also the purposes for which loans can be provided under the program.

Read: Small Business Loans: What Has Changed Due to Coronavirus.


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