Program for Targeted Lending to Small and Medium-Sized Business Clients under the "AFFORDABLE LOANS 5-7-9%" Program, implemented by the Government of Ukraine on the initiative of the President of Ukraine through the Entrepreneurship Development Fund
Purpose of the loan: acquisition of fixed assets - equipment (agricultural and construction equipment, commercial transport) and machinery sold through Partners - sellers/manufacturers of equipment and machinery accredited by the Bank, as well as the purchase of non-residential real estate for business activitiesMaximum loan amount: UAH 3,000,000.00. An increase in the loan amount is possible subject to additional agreement
Currency: UAH
Maximum loan term: 5 years
Own funds participation:
- "existing business" - own contribution of at least 20% of the equipment cost
- "start-up" (registration period up to 12 months) - own contribution of at least 30% of the equipment cost
Conditions:
| Business segment at the date of the loan agreement |
Interest rate |
Condition |
| micro, small |
5%* |
Established if at least 2 new jobs were created and the number of jobs was maintained at the level of the reporting (previous) quarter during the first full quarter from the date of the loan agreement |
| 7% |
Established at the time of the loan agreement. No requirement for hiring employees. The interest rate decreases by 0.5% for each new job created, but not less than 5% per year |
|
medium, large
|
9%
|
Established at the time of the loan agreement. No requirement for hiring employees. The interest rate decreases by 0.5% for each new job created, but not less than 7% per year
|
*The 5% loan rate is available for micro and small enterprises only after the first quarter provided that at least two employees are hired
Commission paid by the Borrower on the day of the loan agreement at their own expense:
- for the provision of the loan: 0.75% one-time from the loan amount;
- for loan servicing: 0.75% one-time from the loan amount.
Collateral requirements:
- The collateral for the loan is the equipment purchased with loan funds (the pledge agreement is concluded without notarization).
- The market value of the equipment is determined based on the price indicated in the invoice (purchase agreement).
- For individual entrepreneurs, a spousal guarantee is provided.
- For legal entities, a guarantee from the founder or the ultimate beneficial owner(s) owning the largest share in the borrower's authorized capital is provided.
- For individual entrepreneurs with annual income up to UAH 50 million and a loan amount up to UAH 500,000, a loan can be obtained without collateral but with a mandatory guarantee.
These conditions apply according to
the Cabinet of Ministers Resolution No. 28 dated January 24, 2020, with amendments and additions.
