Available loans at 5-7-9%: maximum amount increased

The Cabinet of Ministers of Ukraine is improving the mechanism of the “Available loans at 5-7-9%” state program, including plans to increase the maximum loan amount from UAH 1.5 million to UAH 2 million and revise how the interest rate is calculated.

This was reported by the press service of the Ministry of Finance.

Among the new opportunities offered to entrepreneurs are plans for:

  1. increasing the maximum loan amount from UAH 1.5 million to UAH 2 million;
  2. expanding the investment purposes for which loans can be provided, in order, for:
    • buying non-residential real estate without the right to transfer such real estate for paid or free use to third parties;
    • buying intellectual-property objects under commercial concession (franchise) agreements tied to a business entity’s implementation of an investment project;
    • replenishing a business entity’s working capital in an amount not exceeding 25% of the total value of the investment project financed with loan funds;
  3. revising how the interest rate on the loan is calculated;
  4. increasing to 35% the maximum share of the guarantee payment under the Entrepreneurship Development Fund’s guarantee, with a corresponding increase to 25% in the permissible share of problem debt on loans issued to newly created business entities;

As part of measures meant to prevent the spread of coronavirus, the Cabinet of Ministers has, among other things, set September 1, 2020 as the deadline by which business entities can apply for state support for anti-crisis measures.

A maximum loan amount has also been set:

  • up to UAH 3 million for business entities engaged in producing medicines and/or medical devices and/or medical equipment;
  • up to UAH 1 million if the loan is provided to finance a business entity’s working capital in certain cases;

As of March 16, 14,416 applications had been submitted to participate in the “Available loans at 5-7-9%” program, for a total amount of UAH 9.5 billion. 169 loans had been issued for a total of UAH 110.2 million.

Source: mof.gov.ua, agroportal.ua