Grants for business – 2024

Starting from the end of 2019 and the beginning of 2020, the world was covered by the COVID-19 viral pandemic, which contributed to the closure of business in all states, and Ukraine was no exception in this regard.

In addition, in February 2022, the Russian Federation carried out a full-scale invasion of Ukraine, which as a result caused mass unemployment, a large migration of displaced persons, a reduction of working personnel in companies, and their closure throughout the country.

In connection with these events, citizens needed to receive financial support from the state and international organizations, and thus business grants were created. However, not every person knows what current grant programs are in effect today.

Therefore, in this informative article, we will talk about the specifics of obtaining business grants and indicate which programs are relevant in 2024.

What are business grants?

First of all, it should be noted what should be understood under the grant program in general.

Grant – means non-refundable financial aid, which is provided for the rapid development and creation of new startups, small and medium-sized businesses in the state

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Grant funds are received on a competitive basis from various state institutions, charitable foundations, and organizations, private firms, or international institutions. The one who provides grant assistance is the grantor or donor, and the one who receives the funds is the grant recipient.

Grant programs are usually aimed at simultaneously solving certain business problems, namely:

• creation of new jobs, which helps fight unemployment;
• support the economic growth of a specific region or region in the country;
• engage in education development;
• solve social and humanitarian problems for business;
• support startups and creative projects of citizens.

Thus, business grants simultaneously solve several urgent problems regarding non-refundable financing of citizens, instead of taking credit funds from financial institutions and supporting the development of the state’s economy as a whole.

Ukrainian grants for business – 2024

As of 2024, the following existing grant programs for business can be identified in Ukraine, namely:

• Grant “Own business”– is one of the most popular Ukrainian programs for financing small and medium-sized businesses.

To receive financing under the “Own Business” program, it is necessary to create at least one workplace, conduct business activities of the enterprise for the next three years, and constantly pay taxes to the state budget of Ukraine.

In addition, the funding received under the grant program does not need to be returned, since the grant funds are reimbursed through the payment of taxes and fees.

The size of the grant ranges from 50,000 to 250,000 hryvnias.

It can be obtained both by citizens who only wish to engage in entrepreneurial activities and by active sole proprietorships, as well as by legal entities;

• Grant for veterans and spouses– is a popular decision among citizens of Ukraine, as the number of war veterans and combatants is constantly increasing due to active hostilities in the country.

To receive funding under the grant program, it is necessary to create the appropriate number of places depending on the final amount of grant funds, to carry out the business activities of the enterprise within the next three years, and to properly pay taxes to the budget.

The size of the grant varies from 250 thousand to 1 million hryvnias. So, if a citizen receives 250 thousand hryvnias, then he is obliged to create at least one workplace, 500 thousand – two workplaces, 1 million – four workplaces, two of which will be occupied by war veterans or persons with disabilities.

Participants in hostilities, war veterans, citizens who received a disability in connection with the war, as well as their official spouses can receive funding under the grant program.

• Grant for a processing enterprise– is an actual solution for the development of the processing industry in Ukraine.

In order to receive financing under the grant program, it is necessary to create at least 25 jobs, carry out economic activities of the enterprise within the next three years, and properly pay taxes to the budget.

The amount of the grant is up to 8 million hryvnias, the funds can be spent on the purchase of equipment for the processing of products, its commissioning and delivery to the enterprise.

Citizens who only wish to engage in entrepreneurial activities, as well as active sole proprietorships, as well as legal entities, can receive financing within the framework of the grant program;

• Grant “Svoy Sad”– is an actual solution for the development of own horticulture, berry growing, and viticulture.

To receive funding under the grant program, the number of jobs must be created, which depends on the type of culture that will be grown on the plot of land (for example, for apple, pear, cherry, cherry – 6 permanent and 250 seasonal jobs, for raspberries, currants, blackberries – 10 permanent and 375 seasonal, etc.), to carry out the activities of the enterprise for the next 5 years, to properly pay taxes to the budget.

In addition, grant funds are provided only for a garden from 1 to 25 hectares, and if the plot of land belongs to a citizen with the right of ownership for at least 7 years. T

he size of the grant is from 140,000 to 400,000 hryvnias per hectare, but it cannot be more than 70% of the cost of the entire project of planting the necessary crops. FPOs, as well as legal entities, can receive funding under the grant program;

• Grant “Your Greenhouse” –is an actual solution for those citizens who have long dreamed of building their greenhouse.

To receive funding under the grant program, it is necessary to create at least 14 new jobs per 1 hectare of the total area of ​​the modular greenhouse, to operate the enterprise for three years after the construction of the greenhouse is completed, to make an irrigation and water intake system, and to properly pay taxes to the budget.

In addition, grant funds are provided for the construction of a greenhouse from 0.4 to 2.4 hectares in size, which must be created within one year after the approval of funding by the grantor.

The size of the grant depends on the total area of ​​construction of the greenhouse, so for 0.4 – 0.6 hectares – 2 million hryvnias, for 0.8 – 1.2 hectares – 3.5 million hryvnias, for 1.6 – 2.4 hectares – 7 million hryvnias, however, financing is carried out no more than 70% of the total cost of the project. Both non-profit organizations and legal entities can receive funds under the grant program.

International grants for business – 2024

• Grants to support medium and large processing enterprises– an actual solution to support various Ukrainian processing industries in the state. To receive funding under the grant program, you must meet the following criteria:

1. The number of employees of the company must be at least 100 people;
2. The company’s annual turnover is no less200,000,000 hryvnias;
3. Conducting business activities of a legal entity helps not only to create conditions for the expansion of already existing production, but also for its future modernization, and the launch of certain innovative products, which will lead to an increase in the number of jobs in the country, a decrease in the unemployment rate, and an increase in the volume of sales of goods and products on various their sales markets.

The size of the financing is up to 500,000 USD and is provided to processing enterprises in the following industries: production of packaging materials, food industry, textiles, products needed for the restoration of enterprises and their reconstruction (building materials, etc.);

• Seeds of Bravery UASEEDs grant program – an actual solution for supporting the Ukrainian technological ecosystem.,

To receive funding under the grant program, applicants must be:

1. officially registered on the territory of Ukraine, or moved to one of the EU member states or have registration in the territories (OST) after February 24, 2022;
2. to have one Ukrainian founder in the company working full-time.

The amount of grants depends on the type and direction of funding, namely:

• Business and innovative services – up to 10,000 EUR;
• Innovative entrepreneurship – up to 25,000 EUR;
• Deep technology incubators – up to 25,000 EUR;
• Reconstruction of Ukraine – up to 25,000 EUR;
• Scaling and acceleration in the field of deep technologies – up to 50,000 EUR.

Get advice from a grant specialist

If you have any questions about business grants, please contact the Prikhodko and Partners law office.

Cooperating with clients our lawyers will explain all problematic aspects of obtaining grant funds under one or another program, as well as provide appropriate legal support for obtaining the desired financing. So don’t delay and come to our office for a consultation!