The Cabinet of Ministers of Ukraine has expanded the Affordable Loans 5-7-9% program to medium-sized businesses with an annual income of up to EUR 20 million, adopting a relevant resolution at an extraordinary meeting on December 28.
As the Finance Ministry said on the website on Tuesday, the amendments made to resolution No. 28 dated January 24, 2020 also imply the liberalization of loan terms. In particular, the term of the loan for financing the working assets has increased to three years, the possibility of deferred payment for the loan repayment has been extended to 12 months, and the government has also reduced the initial payment for an investment project (10% for an existing business and 15% for startups).
In addition, the conditions for refinancing loans are mitigated in terms of ensuring the safety of the wage fund, a decrease to 50%, as well as to 50% in the number of employees (as of March 1, 2010).
The Finance Ministry said that for loans for financing working assets, interest compensation is established up to 0% per annum for the period of quarantine and restrictive measures, and after their cancellation, their compensation continues at the level of 3% per annum. For refinancing loans, interest compensation is established up to 3% per annum after March 31, 2021, the issue of the possibility of combining government support under the Affordable Loans 5-7-9% program with government support, which can be provided by local state administrations and local governments on the basis of regional and local programs for the development of small and medium-sized businesses.
By December 28, 2020, the number of applications for participation in the program exceeded 58,000 for a total of UAH 69 billion. In general, over the entire period of the program, 7,100 credit agreements were signed for a total of UAH 16.5 billion. Some 23 banks work with the program.