Ukrainian businesses can once again receive loan support from Oschad with a grant component from the German government

Oschadbank is launching the second phase of the Project "Access to Finance and Support to the Resilience of MSMEs in Ukraine II" within the framework of the international cooperation project ReACT4UA ("Application and Implementation of the Association Agreement between the European Union and Ukraine in the field of trade") to provide grant support to micro, small and medium-sized enterprises involved in economically important business sectors for Ukraine, such as agriculture, including food supply and processing, clothing (textile) industry, processing industry, and еxport-oriented production.

This Project is funded by the German Government and implemented by the German federal company Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in cooperation with the Deutsche Sparkassenstiftung für Internationale Kooperation (DSIK) and the Entrepreneurship Development Fund (EDF).

"The German Sparkassenstiftung for International Cooperation is honored to have the opportunity to continue supporting Ukrainian business, which is very important for the development of Ukraine's economy, especially in the difficult economic circumstances caused by the war. Together with our local and international partners, we will contribute to the stability and development of the country's economy. Thanks to the second phase of the Project, more than 500 companies will be able to receive financial support for the implementation of their business ideas," said Eduard Schmitt, Head of DSIK.

The second phase of the Project envisages a more than threefold increase in the budget, which amounts to EUR 4.2 million. Thanks to the Project, internally displaced enterprises and enterprises from the de-occupied territories will be able to receive a grant (compensation) amounting to 30% of the cost of the investment project, but not more than 30,000 euros in UAH equivalent. For all other enterprises, the maximum amount of grant support is 20%, but not more than EUR 20,000 in the hryvnia equivalent.

The grant program is open to enterprises with a positive credit history, up to 250 employees and an annual income of up to EUR 10 million, which have not received international technical assistance since February 1, 2022, and have no debts to the state budget. Applications for participation in the program are accepted at Oschadbank branches until January 31, 2024.

"As our previous experience shows, the program of financing micro, small and medium-sized businesses (MSMEs) from Oschad and the German government is unique and therefore in great demand. During a full-scale war, this is a very important support for the competitiveness and sustainability of Ukrainian enterprises, which in turn contributes to the country's economic growth. I am grateful to the partners for extending the program and choosing Oschad again to implement it," said Natalia Butkova-Vitvitska, Oschadbank Management Board Member in charge of micro, small and medium-sized businesses.

Oschad has successful experience in implementing the first phase of the project during 2023. As a result, the bank's clients received grants from the German government totaling more than UAH 52 million. By this indicator, Oschad ranks first among all program participants. More than 62% of grant recipients are registered and operate in the war-affected regions or in the de-occupied territories.

Consultation on obtaining grant support is available at the Oschadbank Contact Center for Business Clients: 0 800 219 800.