The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are expanding a support programme for micro, small, and medium-sized enterprises (MSMEs), as well as larger companies in Ukraine. This will enable EUR 2 billion in new financing to be mobilized through EBRD partner banks, supported by an additional EUR 315 million from the EU, the financial institution announced on its website.
The additional EU support is provided through the Ukraine Investment Framework (UIF) and includes EUR 200 million in guarantees, EUR 105 million in grants, and EUR 10 million in technical assistance.
According to the press release, the new package is expected to provide financing for at least 3,000 MSMEs and help preserve around 180,000 jobs.
Funds will be distributed through EBRD partner financial institutions in Ukraine. The bank estimates that the programme expansion will improve business access to financing during the war, particularly amid rising credit costs, disrupted logistics, and the need for companies to replace or modernize damaged equipment.
Ukrainian companies will be able to receive investment incentives in the form of EU grants covering 10% to 30% of the cost of critical capital investments, primarily in high-efficiency and “green” technologies.
At least 50% of these grant incentives will be directed to priority MSME categories: businesses with assets damaged or destroyed due to the war, companies in frontline regions, veteran-owned businesses, enterprises supporting the reintegration of internally displaced persons and people with disabilities, micro-enterprises, startups, small farms, as well as businesses led by women and young entrepreneurs.
"The programme will also support the revitalisation of Ukraine’s insurance market, with a particular focus on developing war risk insurance solutions. A pilot project will include insurance subsidies for MSMEs."
Part of the expanded support will be implemented under the Enterprise Security Enhancement (ESE) mechanism, which the EBRD is piloting together with partner financial institutions in Ukraine. It allows banks to reduce debt burdens for borrowers whose assets have been affected by the war.
To implement this mechanism, EUR 200 million in first-loss guarantees provided by the EU under the new phase of the programme will be used. This credit-risk coverage related to war-related asset losses is intended to support investment lending and the continuity of economic activity.
The support continues the first phase of the Financial Inclusion Recovery Programme, which demonstrated strong demand from Ukrainian businesses for financing through partner banks.
