Receiving a grant for sewing production under the program for a processing enterprise

Future entrepreneurs registered in accordance with the current legislation of Ukraine, private enterprises or legal entities can apply for a grant for the production of the processing industry, if they plan or already carry out activities in the field of garment production (КВED 13-14).

The amount of the request cannot exceed UAH 8,000,000 and must provide for the expenditure of grant funds in accordance with the applicant’s business plan exclusively for: purchase of means of production (sewing machines, other technical equipment for production); commissioning of equipment; delivery of pre-purchased production equipment.

We suggest that you familiarize yourself with the conditions of participation in the grant program in more detail.

1. Conditions for obtaining and using grant funds under the program

According to the program for the production of the processing industry, there are several mandatory conditions:

• the applicant must register a sole proprietorship or a legal entity within 15 working days and within the same period open a special account at Oschadbank JSC for crediting grant funds;
• from the moment of receiving grant funds to the account, the applicant must conduct activities for the next 3 years and pay taxes to the state budget for himself and the employees;
• depending on the desired amount of the grant, the applicant must create: 5 jobs (the amount of the request is up to UAH 1.6 million); 10 jobs (request amount up to UAH 3.2 million); 15 jobs (request amount up to UAH 4.8 million); 20 jobs (request amount up to UAH 6.4 million); 25 jobs (request amount up to UAH 8 million);
• to make an amount of own contribution equal to 50% (20% – for persons who will carry out activities in de-occupied territories or where active hostilities were conducted) of the price of equipment, operation or delivery, which can be the applicant’s own funds, credit funds, or the contribution of a third party (donor, investor).

In case of receiving a positive decision on the grant and after opening a special account, the applicant is given time to credit the amount of his own contribution to it, after which the grant funds should go there within a month.

A responsible manager of Oschadbank JSC is appointed to maintain the account and implement the grant funds, who, based on the documents provided by the applicant (invoices, statements, contracts, etc.), transfers the grant directly to the details of his supplier, service provider.

2. Requirements for the applicant and his business reputation

This grant program requires a mandatory check of the applicant’s business reputation according to the following criteria: the presence of credit defaults during the applicant’s lifetime (if the applicant is a legal entity, the business reputation of the founders and director is checked), tax debts and open criminal, administrative or enforcement proceedings at the time of application grant

There are also other requirements for legal entities applying for a grant. In particular, the maximum number of beneficiaries and related legal entities is 4.

3. The procedure for obtaining a grant for sewing production

The specialists of Prikhodko and Partners JC offer their services in full support of the client in applying for a grant for both processing (garment) production, which includes:

• grant application development service;
• a service for preparing a business plan from scratch;
• service for preparing the applicant for an interview with the Employment Center;
• guarantee of bringing to a positive result.

Conclusions.

Those who wish to open or expand their own sewing production can apply for a grant for the production of the processing industry and claim up to UAH 8,000,000.

In order to be sure of the success of their request and to save time and effort, interested clients can contact the Prikhodko and Partners LLC and receive professional support services for obtaining a grant.