Grant programs in martial law are more relevant than ever. This is explained by the fact that Ukrainian citizens are looking for alternative sources of income and investment in their business projects instead of loans from banks.
In addition, in connection with the intensification of international aid to Ukraine, grants provided by foreign companies are increasingly appearing. That is why turning to qualified lawyers to select the appropriate grant is an effective solution to the situation.
Such lawyers are the “Prikhodko and Partners” law office, as we provide assistance in selecting and obtaining a grant for business.
What is a grant and how does it differ from a loan?
A grant is money provided to a person free of charge for various projects (conducting scientific research, business development and job creation, studying abroad, conducting charity programs, etc.) with the mandatory submission of a report on their intended use.
Most often, grants are allocated thanks to the implementation of the grant program on a competitive basis, since it provides for a certain action plan for submitting documents from applicants and the general terms of their financing.
In addition, it is worth noting that grants are provided by grantors, and they can be both state and international organizations. For example, today there are such grant providers as the International Agency for Migration (IOM), the United States Agency for International Development (USAID), the Danish Refugee Council (DRC), and many others.
The difference between grants and loans is as follows:
- The grant is issued with the help of certain grant programs and has a number of conditions for receiving funds, instead, in order to receive a loan, a person needs to apply to a financial institution only with documents certifying his identity;
- A grant is a free and irrevocable receipt of funds, and loans must be returned to the bank with interest;
- Funds received under the grant program have a specific purpose for their use, and in most cases, a person can spend loans on any of his goals.
What are the most popular grant programs in Ukraine?
- Own business – the application can be submitted by persons who want to create their own enterprise in the future, active sole proprietorships, and legal entities. The funds can be spent on the purchase of appropriate equipment or raw materials for the enterprise, or leasing such equipment. The amount of assistance is up to UAH 250,000.
- Processing enterprise – an application can be submitted by natural persons, active FOP, and legal entities that plan to create a processing enterprise in the future or develop an existing one. The money can be spent on the purchase of technological equipment for the enterprise. The amount of assistance is up to UAH 8 million.
- For the military – servicemen (veterans) or their relatives can submit an application. It is possible to receive help if you create jobs for persons who are participants in hostilities or those who have received a disability. The amount of assistance is 250,000, 500,000, and 1 million hryvnias.
What international grant programs currently exist?
- USAID “HOVERLA” – applications can be submitted by profit-making organizations that intend to give up profit and non-profit organizations. The funds are allocated to support the decentralization of local self-government in Ukraine. The total size of the grant program is 6 million US dollars, and the number of grantees is expected to be 30 organizations.
- USAID ” Cyber security of critical infrastructure of Ukraine” – applications can be submitted by developers, startups, and companies that present innovative ideas in the field of cyber security and want to receive investments for their implementation. The amount of assistance is 50,000 dollars.
- IOM “Development of small and medium-sized enterprises” – applications are submitted by small and micro-enterprises that have been registered in Ukraine for at least one year. The funds are allocated with the aim of promoting the recovery of the economy of Ukraine by creating new jobs and ensuring production. The amount of assistance is 4,500 or 20,000 euros.
What kind of help does “Prikhodko and Partners” provide?
- Detailed analysis of your situation and business idea;
- Finding the most appropriate program that meets the client’s interests;
- Development of an effective business plan;
- Writing and collecting other necessary documents for applying for a grant;
- Preparation for the interview with the grantor ;
- Correction of errors, if such were made of course.
In addition, it is worth noting that individuals who independently apply for grant programs have a lower chance of success.
This is evidenced by the statistics, for example, from the “Own Business” grant, where more than 1,000 people wanted to receive grant funds, but in practice, only 50 people were able to achieve their goal, because they had the appropriate legal support.
Therefore, turning to qualified lawyers will help you increase your chances of success in obtaining grant funds. Because of this, do not delay and contact the Prikhodko and Partners law office, because we know what it takes to win the grant program.