Oschad and the All-Ukrainian Association of United Territorial Communities agree on joint programs to support entrepreneurs

Oschadbank and the Entrepreneurship Development Fund have signed memorandums of cooperation with the All-Ukrainian Association of United Territorial Communities (ATCs) to improve the availability of loans to micro, small, and medium-sized businesses (MSMEs). The document refers to joining forces to support innovation, investment projects, providing grants to upgrade material and technical facilities, creating new jobs, etc.

As part of the memorandum, the parties also agreed to develop and implement new financial instruments to support the activities of MSMEs, involve international organizations in their lending, assist MSMEs by preparing business plans and feasibility studies, and compensate for interest on loans within the limits foreseen by the respective budgets of the ATCs. In addition, the document provides for information cooperation, and the organization of joint meetings, seminars, conferences and other events to familiarize local businesses with new financial instruments.

"We are pleased to expand Oschadbank's Development Territory program in cooperation with the All-Ukrainian Association of United Territorial Communities. We are ready to scale up special programs for regional businesses to all territorial communities that are members of the Association. Oschad has personal managers for MSMEs in all regions of the country and is able to provide individualized service to each community through individual cooperation. The national and international entrepreneurial support projects offered by Oschadbank are primarily aimed at creating jobs. This means additional revenues for local budgets. Therefore, each community has a double interest in cooperation: the development of economic potential and, at the same time, an increase in revenues for local social initiatives," said Natalia Butkova-Vitvitska, member of the Board of Oschadbank responsible for MSMEs.

The All-Ukrainian Association of United Territorial Communities has 815 members, and their number is constantly growing. This association assumes the role of a platform for communities and local businesses to communicate with international technical assistance programs and financial institutions, as well as to establish systematic work with other key stakeholders for local economic development. According to a recent survey of communities conducted by the association, local economic development has been identified as one of the most important areas of work for ATCs, as shortfalls in local budgets force community leaders to look for alternative sources of revenue and financial instruments for both communities and local businesses.