Ukrainian entrepreneurs will be able to receive grants of up to €4,000 to restart their operations under the EU4Business program, funded by the European Union and the German government. The funds can be used to purchase equipment, raw materials and supplies, pay salaries, rent and other business expenses.
The main purpose of the grants is to support the resumption of business activities in the territories of Ukraine that have been most affected by the hostilities and occupied, as well as to strengthen the resilience of microbusinesses in other regions of Ukraine in the context of the ongoing war.
Microgrant funds can be obtained through three authorized banks: Oschadbank, Privatbank and Bank Lviv.
The European Union is stepping up its support for Ukrainian business in the midst of the war, especially for small entrepreneurs who are facing the most difficulties. Even at the beginning of the full-scale invasion, the EU successfully implemented a similar grant program to help 300 relocated microenterprises that were most affected by the fighting.
This is emphasized by Remy Duflot, Deputy Head of the European Union Delegation to Ukraine:
“With the new wave of microgrants, we aim to enable 750 more companies to receive funds for their immediate needs, return and resume operations, in particular in the affected and liberated territories of Ukraine.”
Who can join the program?
Microenterprises that:
- have up to 9 employees and annual revenue of up to EUR 2 million;
- carry out their activities in the types of economic activity defined by the microgrant program, starting from 02/01/2021 or earlier;
- have a positive credit history;
- have no debts to the budget of Ukraine;
- have not received international technical assistance since February 1, 2022.
To participate in the competition, a microentrepreneur must submit an application on the Diia portal.
How to participate?
- Fill out an application on the Diia portal. In the application, correctly indicate information about the company’s performance before the war and during hostilities.
- Identify clear areas of use of microgrant funds that cannot be changed during their further funding.
Ukraine is building a country of entrepreneurs and is actively working towards European integration. Micro, small and medium-sized businesses are the main engine of the economy in the European Union. That is why the team of the Ministry of Digital Transformation believes that the development of micro, small and medium-sized enterprises is the key to the country’s stability and development, especially in times of war.
This was stated by Valeria Ionan, Deputy Minister of Digital Transformation for European Integration:
“Currently, grants are direct and effective support that is in great demand among Ukrainian entrepreneurs. We thank our partners for their prompt financial assistance to businesses from the de-occupied and affected regions of Ukraine.”
Selection of participants
The program participants will be selected based on the results of competitions for the following categories of enterprises:
- About 250 grants for the regions most affected by the war. These include Dnipropetrovs’k, Donetsk, Zaporizhzhia, Kyiv (except Kyiv city), Luhansk, Mykolaiv, Sumy, Chernihiv, Kharkiv, Kherson regions. Applications are accepted from 08.08.2023 to 21.08.2023.
- 250 grants for the de-occupied territories of Donetsk, Kyiv (except Kyiv city), Chernihiv, Sumy, Kharkiv and Kherson regions. Applications are accepted from 08/22/2023 to 09/04/2023.
- 250 grants for entrepreneurs from all other regions of Ukraine, except for the temporarily occupied ones. Applications are accepted from 05.09.2023 to 18.09.2023.
The winners of each competition will be determined automatically on a rating basis based on the following main criteria: the level of damage caused by the war, the potential for reconstruction and the quality of measures to restore the microenterprise’s activities.
Resumption of activity
The resumption of business activity and the desire to succeed despite the war are important factors in financial stability and further recovery. EU4Business grants for microbusinesses are yet another proof of the reliable support of Ukraine and Ukrainians by international partners, such as the European Union and the German government.
This was stated by Yuriy Draganchuk, Deputy Minister of Finance of Ukraine for European Integration:
“The Ministry of Finance continues to actively attract new programs and projects for the financial support of small businesses, in particular through the Entrepreneurship Development Fund.”
No calculations or business plans are required. The rating system of the Entrepreneurship Development Fund will automatically calculate the rating and determine the winners.
Hagen Ettner, EU4Business Program Director, GIZ, adds:
“Today, together with our partners, we are launching a new micro-grant scheme with innovative implementation procedures. The selection of beneficiaries from among the microbusinesses that apply will be done automatically, which will speed up the process of providing financial support and make it fully transparent.”
