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Government increases the amount of credit under the Available Loans at 5-7-9% program up to UAH 3 mn

The following news piece is copied from the Ukrainian government´s official web portal: https://www.kmu.gov.ua/en/news/uryad-zbilshiv-do-3-mln-grn-sumu-kreditu-za-programoyu-dostupni-krediti-5-7-9


The Government has doubled the maximum available loan under the 5-7-9% Available Loans program amounting to UAH 3 million now and expanded it with a package of anti-crisis measures to support micro and small businesses. This is the result of the finalization of the Resolution of the Cabinet of Ministers of Ukraine of March 18, “A procedure for providing financial state support to micro and small business entities”, presented by the Minister of Finance Serhii Marchenko at the Government meeting on April 15. The corresponding changes were elaborated by the Ministry of Finance together with the Entrepreneurship Development Fund in cooperation with representatives of banking institutions and entrepreneurs.


First, the range of business entities that can receive the Government’s financial support under the aforesaid program has been expanded. Now entrepreneurs who have a maximum annual income of not exceeding UAH 100 million (earlier up to UAH 50 million) can apply for loans under the terms of the 5-7-9% Affordable Loans program.


Second, the maximum loan amount increases from UAH 1.5 million to UAH 3 million.


Third, the list of goals for which entrepreneurs can borrow under the Affordable Loans 5-7-9% program is enlarged. From now on, businesses can count on government support, also taking loans for the purchase of non-residential real estate without the right to transfer it to any third party; the acquisition of intellectual property rights under commercial concession (franchise) agreements related to the implementation of an investment project by the entity; replenishment of working capital of business entities in the amount of no more than 25% of the total cost of the investment project financed by the credit resource.


The terms of the 5-7-9% Available Loans program have also been updated to extend its effect to businesses that already have loans. That will allow to reduce the debt burden on micro and small businesses, as well as to increase their access to sources of working capital replenishment. In particular, it applies to conducting business activities in the production of medicines, medical devices and equipment; financing of working capital for salaries, rent, utilities and security services, maintenance of the working condition of equipment, raw materials and other materials.


Entrepreneurs may apply for preferential crisis relief credits before the quarantine cancellation plus 90 days after such cancellation. The state also provides for the possibility of obtaining a delay in repayment of the loan provided for anti-crisis measures, but for no longer than nine months.


Importantly, loans under the new rules will be available for micro and small businesses after the Entrepreneurship Development Fund Board has included appropriate changes to the Affordable Loans at 5-7-9 program and updated agreements of the Fund with the lending banks.


16.04.20


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