Receiving a grant for Own business – 2024

Content:

1. About the program
2. The size of the grant
3. Who can get it?
4. What can the grant be spent on?
5. Conditions of receipt
6. Step-by-step scheme for obtaining a grant
7. Program statistics for 2023
8. Assistance in obtaining a grant

Grants during martial law from the state became a significant support for local businesses. After all, in this way, the Ukrainian government shows its interest in the full-fledged development of the country’s economy and the financing of small enterprises in a difficult time for citizens. However, today not everyone knows about the features of such grant programs, which makes it impossible for potential candidates to submit applications for participation in them. This shows the relevance of consideration of this issue today. Therefore, in this informative article, we will talk about the features of receiving a grant for “Own Business”.

About the grant program “Own Business”

On July 1, 2022, the government program “eRobota” was launched in Ukraine. Its main goal was the creation of 6 grant programs aimed at supporting small and medium-sized businesses in Ukraine because, in connection with active hostilities on the territory of the state and the introduction of martial law, Ukrainian entrepreneurs massively began to close their factories and reduce the number of working workers. One of the 6 grant programs included here is the “Own Business” grant.

In 2022 and 2023, this grant program will become one of the most popular projects, because, with its launch, the government simultaneously solves issues related to unemployment, as new jobs are created, as well as financial support for businesses.

What is the size of the grant?

The final amount of funding from the grant program varies from 50,000 to 250,000 hryvnias. However, there are certain additional conditions for its receipt. Yes, up to 150 thousand hryvnias, the winner of the grant must create at least 1 workplace, and up to 250 thousand hryvnias – at least 2 new workplaces.

Who can get it?

Citizens who want to become future private entrepreneurs, active sole proprietorships, as well as legal entities that meet the following criteria can receive financing under the “Own Business” grant program:

• they must not stay and conduct economic activities in the TOT of Ukraine (temporarily occupied territory);
• they must not conduct economic activity on the territory of Russia;
• they should not be under sanctions imposed by both international organizations and internal bodies of Ukraine;
• they must not have any debt to the state (this includes the payment of tax payments, various fees and duties, etc.);
• there should be no active bankruptcy proceedings for citizens and legal entities;
• regarding citizens and legal entities, there should be no decisions of courts of various instances on criminal liability for committing corruption crimes.

Importantly! The grantor also additionally checks the business reputation of the grant recipient. It is about the absence of criminal and enforcement proceedings, defaults on loans and credit rating in general, absence of tax arrears

What can grant funds be spent on?

Funding from grant funds can be spent on the following purposes, namely:

• purchase of equipment needed for business activities;
• purchase of raw materials (materials that are used for the production of various goods, and products and are the main elements used in various spheres of industry, agriculture, construction, etc.);
• rent of residential or industrial premises, but no more than 25% of the total amount of the grant;
• equipment leasing is a form of financing in which one party (lessor) transfers to the user (lessee) the right to use property (real estate, equipment, vehicle, etc.) for a fee for a certain period with the right to buy back the residual value at the end of the lease term.

Grant conditions

Mandatory conditions for receiving grant funds are:

• creation of at least one workplace;
• conduct business activities of the enterprise for at least three years;
• properly pay taxes to the country’s budget, including for the employment of future workers.

Importantly! If at least one of these conditions is not met, the grantee will have to return the entire amount of the grant funds received.

Is it necessary to return the grant to the state?

It is not necessary to return the funds for the grant, since the citizen pays taxes and fees, and thus returns his funding at the expense of the grant program.

What steps must be taken to receive a grant for your own business?

To receive grant funds under the program, the following algorithm of actions should be followed:

1. For online application:

• register on the official website diia.gov.ua, or if you already have a profile, authorize the person using BankID or an electronic signature;
• familiarize yourself with the application and business plan on the website;
• fill out an online application on the website;
• draw up a business plan and add it to the application;
• sign documents using an electronic digital signature and send them to the authorized authority for consideration.

1. For offline application:

• contact the nearest Oschadbank branch;
• submit a completed written application for a grant and attach a written business plan.

Who decides to grant a grant?

The final decision on providing financing through the grant program is made by the State Employment Center. At the same time, the state body must adhere to the following criteria, namely:

• check the business reputation of the grant recipient by submitting relevant documents to an authorized financial institution (bank);
• evaluate the business plan submitted with the application;
• conduct an interview assessment.

What are the deadlines for considering the application?

After the end of the period for submitting applications for the grant program, the State Employment Center must review it within 10 working days and make one of the decisions: to refuse funding, or, on the contrary, to provide grant funds to the applicant.

Statistics of the grant program for 2023

According to the information of the State Employment Center, for the year 2023, within the framework of the “Own Business” grant program, citizens submitted about 16,000 applications for financing. The number of applications for which a positive decision was made is 3321, which is 19% in percentage.

Among those who received monetary financing for 2023, 61% are active FOPs, 12% are legal entities, and 27% are citizens who have not previously engaged in entrepreneurial activity.

In general, for the year 2023, about 2.29 billion UAH was allocated from the state budget of Ukraine to finance the grant program “Own business”, which made it possible to create almost 20.8 thousand new jobs for Ukrainians in practice.

Funding for 2024

In 2022, UAH 543 million was allocated to the “Own Business” grant program, in 2023 – UAH 1.8 billion, and in 2024 the government plans to increase funding to UAH 3.5 billion.

Assistance in obtaining a grant for one’s own business from the JK “Prykhodko and partners”

In 2023, the Prykhodko and Partners grant and investment attraction team helped more than 150 of its clients apply for and receive financing under the Own Business program. Among the businesses that received financing, the most common directions were:

• pet grooming shop
• cafe
• rehabilitation center
• service station
• production of monuments
• self-service coffee machines
• making candles
• restaurant
• a clothing store
• grocery store
• sewing production
• school of online learning
• dining room
• farming
• Pharmacy
• catering
• production of car accessories
• driving school
• online offline board game store
• production of cosmetics

If you have any questions about receiving a grant for “Your Own Business”, in this case, be sure to contact the “Prikhodko and Partners” law office. Our lawyers specialize in providing assistance in obtaining funding under the desired grant program, as we understand all the practical nuances and requirements for potential applicants that are set by grant providers. So hurry up and contact our company!