Obtaining a grant for the production of oil under the program for a processing enterprise

With the rapid development of technology around the world, people have realized that it is not very efficient to produce large quantities of goods by hand. Thus, there was an industrial revolution at one time, where the hard physical labor of people was replaced by machine-factory production.

In this aspect, the processing industry became relevant, because thanks to it it was possible to process raw materials and semi-finished products for the production of future final products. So, processing enterprises have gained wide popularity.

However, in order to open your own processing enterprise, you need to have a significant amount of money, which is a great financial burden for citizens who are only planning to create their own business. That is why it is important to attract funding from other sources, such as grant programs.

In this article, we will talk about the features of receiving a grant for oil production under the program for a processing enterprise from the state.

Who can receive a grant for a processing enterprise?

The terms of the grant stipulate that potential candidates for participation in the program are citizens of Ukraine who are just planning to create their own business, as well as active sole proprietorships and legal entities.

In addition, candidates must meet a number of criteria to apply for a grant, namely:

• not to have any economic ties with the Russian Federation and the Republic of Belarus, i.e. not to conduct any type of economic activity on their territory;
• not to conduct business activities on the TOT of Ukraine;
• not to be under sanctions that may be imposed by various international institutions and states, as well as directly by Ukraine;
• not be at any stage of bankruptcy (for example, pre-trial reorganization, liquidation, etc.);
• not be criminally liable for committing corruption offenses and have an excellent business reputation;
• not be in arrears in tax and other payments to the state.

What amount of funding can be received under the grant program?

As part of the grant program, it is possible to receive up to 8 million hryvnias, but at the same time, the grantee has the obligation to create at least 25 new jobs.

The received funding can be spent on the following areas, namely:

• purchase of basic tools and equipment needed for the operation of a processing enterprise (for example, technological equipment);
• commissioning of technological equipment;
• costs associated with the delivery of purchased technological equipment.

In addition, it is worth noting that for most regions of Ukraine within the framework of the grant program, 50% of the project funding provided is grant funds, and the other 50% must be contributed by the future owner of the processing enterprise.

However, there are also conditions under which financing takes place in the amount of 80% – these are grant funds, and the other 20% – funds of the owner of the processing enterprise (for example, territories affected by active hostilities).

Pay attention! This grant program is an excellent option for additional fundraising for the creation of an oil processing enterprise, as this type of business is ideal for all grant conditions.

Therefore, if you have been planning to open an oil production company for a long time, this is an excellent opportunity to take advantage of the necessary financial support to implement your business plans.

Do you have any questions about this topic?

In such a case, you should always contact the Prikhodko and Partners law office.

Our lawyers will help you get financing under the grant program you have chosen, because they understand this issue perfectly, because they have many years of experience in the field of jurisprudence.

In addition, we always apply only an individual approach to every situation that arises with citizens in practice, because we understand that each case is special for our clients. Get in touch!