Contents of the article
- Purpose and priority areas of financing under the “Affordable Loans 5-7-9%” program
- Who can obtain a state loan for business development
- Lending conditions under the “Affordable Loans 5-7-9%” program
- Purpose of the loan funds
- Loan security
- Advantages of lending under the state program
- Frequently asked questions about lending conditions
A government loan for business development under the “Affordable Loans 5-7-9%” program is an effective tool for financial support of entrepreneurs, implemented by the Entrepreneurship Development Fund. The program is designed to provide entrepreneurs with easier access to financing at reduced rates.
Entrepreneurs can obtain loans under the “Affordable Loans 5-7-9%” program at an interest rate of 5%, 7%, or 9% per annum, depending on the objectives and parameters of the project. The state compensates for the rest of the bank's interest rate, reducing the borrower's debt burden.
For companies that create new jobs, there is an additional rate reduction of 0.5% for each employee, but not less than 5% per annum.
And enterprises operating in regions with increased military risk can obtain investment loans at 1% per annum for the first five years and 5% thereafter.
The “Affordable Loans 5-7-9%” program is a practical tool for state support of Ukrainian business, helping entrepreneurs to restore, expand, or maintain their activities, create jobs, and strengthen the country's economy.
Purpose and priority areas of financing under the “Affordable Loans 5-7-9%” program
The main purpose of the program is to stimulate Ukraine’s economic development by supporting small and medium-sized entrepreneurs, particularly in sectors that ensure stability and food security.
Priority areas of financing:
- support for businesses in the agricultural sector, processing industry, and livestock farming;
- financing the restoration of enterprises affected by hostilities;
- development of new productions and creation of jobs;
- support for entrepreneurs from temporarily occupied territories;
- financing projects aimed at achieving energy independence.
1. Support for Small and Medium-Sized Businesses
The program promotes the development of key sectors of the Ukrainian economy, including the agricultural sector, processing industry, and livestock farming. Entrepreneurs are given the opportunity to invest in production modernization, purchase of machinery, equipment, or raw materials, while maintaining stability and preserving jobs.
2. Restoration of Enterprises Affected by the War
A separate area of the program provides financing for businesses that suffered losses as a result of hostilities. Support is granted to companies whose production facilities as of February 24, 2022, were located:
- in areas of active hostilities;
- in zones where hostilities continue but state electronic resources remain operational;
- in temporarily occupied territories according to the official list.
In addition, a preferential state loan for businesses may be obtained to restore fixed assets of enterprises destroyed as a result of military aggression, subject to the availability of supporting documents.
3. Business Development and Economic Growth
The program encourages the creation of new productions and jobs, particularly in regions in need of economic recovery. This contributes to attracting investment, strengthening local economies, and developing the domestic market.
4. Support for Businesses in Temporarily Occupied Territories
Special attention is given to companies that continue operating in temporarily occupied territories, providing the population with essential goods and services. Such businesses perform an important social function by maintaining community life even under difficult conditions.
5. Energy Efficiency and Energy Independence
The program also provides financing for energy service projects aimed at strengthening the country’s energy security. Among the supported areas:
- development of renewable electricity sources without applying the “green” tariff;
- implementation of energy storage systems and charging infrastructure;
- development of local power grids in industrial parks;
- construction of generation facilities.
Thus, the “Affordable Loans 5-7-9%” program is an important instrument for supporting small and medium-sized businesses, helping not only to restore destroyed enterprises but also to create conditions for developing new productions, increasing energy efficiency, and enhancing Ukraine’s economic resilience.
Who can obtain a state loan for business development
Representatives of micro, small, and medium-sized businesses that meet the established criteria may participate in the state “Affordable Loans 5-7-9%” program.
A state business development loan may be obtained by a legal entity or individual entrepreneur registered in the territory controlled by Ukraine. The company owners must be citizens of Ukraine, and the ultimate beneficiary must be the actual owner of the business.
For the agricultural sector, a mandatory condition for participation is the registration of the agricultural producer in the State Agrarian Register.
Both newly established enterprises and companies already operating may take advantage of a state loan for business development.
For start-up entrepreneurs, to obtain a state loan for launching a business, it is important to prepare a realistic, well-structured, and financially substantiated business plan that demonstrates the viability of the future project.
Lending conditions under the “Affordable Loans 5-7-9%” program
Within the framework of the state program, entrepreneurs can obtain financing of up to UAH 150 million — depending on the business activity and purpose of the loan.
For investment projects, loans are provided for up to 10 years, which allows planning business development with long-term goals in mind. For working capital replenishment — up to 3 years, to support the stability of current operations.
The interest rate is 5%, 7%, or 9% per annum — depending on the purpose of financing, business size, and project parameters.
A separate benefit for enterprises operating in regions with increased military risk is the possibility to receive investment loans at 1% per annum for the first five years and 5% thereafter.
Detailed lending conditions are available on the bank’s website on the Affordable Loans 5-7-9% page.
Purpose of the loan funds
Under the state program “Affordable Loans 5-7-9%,” entrepreneurs may obtain financing both for implementing investment projects and for supporting the current operations of their businesses.
Investment purposes
Loan funds may be directed toward:
- renewal and acquisition of fixed assets, including machinery, equipment, or vehicles used in production or commercial activities;
- purchase of non-residential real estate or land plots for conducting the enterprise’s business activities, without subsequent transfer to third parties for use;
- construction, reconstruction, or repair of production and non-residential premises where the company’s core activities are carried out;
- acquisition of intellectual property rights or a franchise directly related to the implementation or development of an investment project;
- implementation of energy efficiency measures for condominium associations and housing cooperatives, including the purchase and installation of generators based on renewable energy sources, energy storage systems, and necessary auxiliary equipment.
Working capital financing
The state program also allows the use of loan funds to ensure the daily operational activities of the enterprise (except for condominium associations and housing cooperatives), helping businesses maintain stable cash flow and meet obligations to partners on time.
Loan security
Fulfillment of loan obligations under the “Affordable Loans 5-7-9%” program may be secured by various types of collateral, including:
- the borrower’s property acquired with the loan funds;
- movable or immovable property with sufficient liquidity (real estate, transport, equipment, machinery, property rights);
- financial surety, applicable to entrepreneurs with annual income up to UAH 50 million;
- partial collateral through state programs, including guarantees from the Entrepreneurship Development Fund or state portfolio guarantees. The amount of such collateral may cover from 50% to 80% of the loan amount — depending on the financing purpose and type of collateral.
The loan cannot be secured by a pledge of claims to funds in a deposit account and/or by a pledge of domestic government bonds of Ukraine.
Advantages of lending under the state program
The “5-7-9%” program is one of the most effective tools for supporting entrepreneurs, especially under challenging business conditions in Ukraine.
Why it is beneficial for businesses:
- Minimal interest rates — starting from 5% per annum, which is significantly lower than standard bank lending conditions, and enterprises operating in regions with increased war risk can receive investment loans at 1% per annum for the first five years.
- Substantial financing limits — up to UAH 150 million, depending on the business area and project goals.
- Long loan term — up to 10 years for investment projects, allowing development planning without excessive pressure on the business.
- Guaranteed state support — the program is implemented under the supervision of the Government of Ukraine and ensures transparent financing conditions.
- Motivational incentives — enterprises that create new jobs may further reduce the interest rate on investment loans.
- Flexible collateral conditions — the possibility to use state guarantees or obtain working capital financing without collateral.
The program will be especially useful if you plan to:
- implement an investment project that creates jobs;
- modernize or expand your business;
- introduce energy-saving technologies;
- restore facilities damaged by the war;
- relocate your enterprise to a safe region;
- purchase agricultural machinery and equipment.
By using the “Affordable Loans 5-7-9%” program, you gain access to long-term financing, while the state small business lending program effectively reduces the financial burden on your business, making development and investment more accessible and secure.
Frequently asked questions about lending conditions
1. What purposes are not eligible for lending?
Within the program, lending is not provided for the purchase of residential real estate and movable property, except those directly used in the enterprise’s commercial activity.
2. What conditions must be met to receive compensation?
The enterprise must pay the preferential interest rate monthly and submit reports to the partner bank on time.
3. Which banks participate in the “Affordable Loans 5-7-9%” program?
The program is implemented through authorized banks that cooperate with the Entrepreneurship Development Fund. Their list is regularly updated on the official website of the Fund.
4. What is the maximum loan amount that can be obtained?
Depending on the business area, entrepreneurs can receive up to UAH 150 million for investment or working capital needs.
5. Can the loan be repaid early without penalties?
Yes, early repayment of the loan under the “Affordable Loans 5-7-9%” program is allowed without additional commissions or sanctions.
