Up to 150 million hryvnia for business recovery: government business support program launched
1 July 17:02
The government has announced the launch of a new loan program to help businesses affected by Russian shelling recover: small and medium-sized businesses can receive up to 150 million hryvnias.
This was announced by Ukrainian Prime Minister Yulia Svyrydenko, according to "Komersant Ukrainian".
“Today, a new program offering lower-cost loans for the restoration of businesses affected by Russian shelling has been launched. Small and medium-sized businesses can receive up to 150 million hryvnias under the ‘Affordable Loans 5-7-9%’ program to restore destroyed or damaged property,” Svyrydenko wrote.
For the first two years, the interest rate on these loans is 0.1% per annum. Starting in the third year, the terms follow those of the 5-7-9 program.
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The maximum loan term is up to 10 years. Applications can be submitted through one of the authorized banks within two years after the damage or destruction of the business has been officially documented.
“These loans will not be counted toward the maximum loan amount under the 5-7-9 program. This will allow businesses to take advantage of other loans under this program while they are rebuilding,” the prime minister explained.
She added that, in addition to the new loan program, businesses have access to grants for restoring production equipment, mechanisms for compensating employees’ wages during forced downtime caused by Russian shelling, and insurance against war risks.
Key Terms of Preferential Loans
The government has offered businesses the most favorable financing terms for the first years of reconstruction:
- an annual interest rate of 0.1% will apply for the first two years from the date the loan is received;
- Starting in the third year, the interest rate reverts to the standard terms of the “5-7-9%” program;
- the maximum loan term is up to 10 years;
- Applications maybe submitted to one of the authorized banks within two years from the date the damage to or destruction of the business is officially documented.
These specific loans will not be counted toward the maximum loan amount limit for other components of the “5-7-9%” program.
This means that businesses will be able to simultaneously obtain funds for reconstruction and utilize other loans under this program.
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