Oschad and Zhytomyr Regional Military Administration agree to jointly support local businesses and veterans

Today, Oschadbank and the Zhytomyr Regional Military Administration (RMA) signed a memorandum of cooperation to reduce the cost of loans for micro, small and medium-sized businesses (MSMEs) to provide affordable financial resources to restore the region's economy and increase the number of jobs. The main focus is on veterans who have a business and want to scale it up, or are just planning to start their own business.

Through this cooperation, the bank will expand the list of loan offers for the region's MSMEs, and the local authorities will contribute to reducing the cost of loans for them within their budgets.

Entrepreneurs, who are war veterans and members of their families, as well as companies with more than 30% of their staff being war veterans, will be reimbursed for part of the principal amount of the loan for the purchase of fixed assets and franchises.

The loan amount for which the partial reimbursement of the loan principal is made is UAH 2 million, and the reimbursement amount is from UAH 100 thousand.

In addition, the agreement envisages a reduction in the cost of housing purchased under the terms of the state program eOselia for people with disabilities resulting from a full-scale invasion, combatants and their family members, at the expense of the regional budget.

The memorandum also contains provisions for engaging international business support programs to cooperate with veteran entrepreneurs, assist in the preparation of business plans, provide grants, etc.

“The Zhytomyr Regional Military Administration, along with other state institutions, is a provider of important business and citizen support programs initiated by the President and the Government of Ukraine on the territory of the region. The signing of the memorandum of cooperation with Oschadbank is another step towards the development of this work. We continue to work on creating comfortable conditions for entrepreneurship in Zhytomyr region, developing a dialogue between the authorities, business and financial institutions,” said Vitalii Bunechko, Head of Zhytomyr Regional Military Administration.

“Encouraging veteran entrepreneurship can be an important step towards creating a sustainable and inclusive economy where every veteran can find a use for their skills and contribute to the country's development. Veterans who start their own businesses create new jobs, promote innovation, develop the communities where they live, and increase tax revenues. Since the beginning of the war, Oschad has introduced several effective programs to help veteran businesses recover and grow. First of all, it is our own 4.5.0 program, providing the eRobota grants, as well as soft loans in cooperation with international partners and municipalities. We are grateful that Zhytomyr RMA decided to join Oschadbank's hub for supporting veteran businesses,” commented Natalia Butkova-Vitvitska, Oschadbank Board Member in charge of MSMEs.

Oschadbank has been the undisputed leader in financing the region's economy since the beginning of the full-scale invasion. The relevant loan portfolio currently exceeds UAH 1 billion. By volume, it ranks first among banks in the region. The regional office of Oschad in Zhytomyr region is an active participant in preferential programs to support entrepreneurship. Thus, under the program “Affordable Loans 5-7-9%” in 2024, Oschad issued 848 loans in the region totaling UAH 613 million.

With the help of Oschad, 914 entrepreneurs in the region received eRobota state grants worth UAH 217.2 million. Since the launch of a special product for veterans, Business 4.5.0, in the summer of 2024, entrepreneurs in Zhytomyr region have received funding from Oschadbank in the amount of over UAH 7 million.