In December, the grant programme "Support for the Energy Resilience of Micro and Small Enterprises in Ukraine" will be launched, financed by the Government of Norway through the Norwegian Agency for Development Cooperation (NORAD) and the Government of Germany.
The programme provides €2 million in grants to entrepreneurs for the purchase of energy-efficient production equipment, autonomous energy sources, and energy storage systems, as well as partial funding (10%) for installation and maintenance of such equipment.
The programme is being implemented by the German Federal Company Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and the Entrepreneurship Development Fund.
"This €2 million grant programme is a continuation of the Government’s systematic efforts to support small businesses and attract international financing. It is of crucial importance for the economy and financial stability of our country during the war, when Russia is daily attempting to destroy Ukraine’s energy infrastructure. In cooperation with the Government of Germany, we have successfully implemented several business support projects, and now the Norwegian Agency for Development Cooperation is joining, which we are very pleased about. Partner banks, including three state-owned banks, have vast experience working with small businesses. These factors, along with the introduction of a transparent IT system for selecting grant recipients and the opportunity to combine this programme with the "5-7-9%" loan programme, are designed to ensure the programme’s success," stated Yurii Draganchuk, Deputy Minister of Finance for European Integration.
Grant support under the programme will be provided through four authorized banks: Ukreximbank, Oschadbank, Sens Bank, and Bank Lviv.
The programme will be implemented for businesses in two components:
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Grants for microenterprises up to €10,000 without mandatory combination with bank loans. However, it is possible to attract loans for financing investment projects.
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Grants for small businesses up to €20,000, provided in conjunction with bank loans. Upon successful completion of the investment project, small businesses can receive compensation of up to 40% of the current loan debt.
"To receive a grant under the energy resilience programme, representatives of micro and small businesses must fill out an application on the Entrepreneurship Development Fund's ‘Navigator of Financial Support’ portal, providing information about the enterprise’s performance and electricity consumption. It is also necessary to specify the intended use of the grant funds, which cannot be altered during the funding process. There is no need to provide calculations or business plans, as the Fund’s rating system will automatically determine the winners based on the application," said Andrii Hapon, Chairman of the Board of the Entrepreneurship Development Fund.
