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:
Compensation Interest Rate:
-
7% per annum for enterprises whose annual income from financial activities does not exceed the amount equivalent to EUR 10 million;
-
9% per annum for enterprises whose annual income from financial activities exceeds the amount equivalent to EUR 10 million, but is not greater than EUR 50 million.
Base Interest Rate: UIRD 3 months + 6% / 4% / 3% (respectively for micro / small / medium enterprises);
Increased Base Interest Rate (per annum): 20% per annum (applied for the entire loan term if the Base Interest Rate is below 20%).
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.
