RECEIVING A GRANT OF 8 000 000 UAH

The state program of irrevocable financing of business in the field of processing industry (up to UAH 8 – 16,000,000) is aimed at stimulating domestic production.  

Below is a detailed analysis of the program conditions, requirements for applicants and documentation required for the application.   

What are the conditions for obtaining a grant for a processing enterprise?   

The grant is provided for the development of the processing industry, including the creation of new plants or increasing the productivity of existing production facilities.  

The following can apply for a grant for a processing enterprise:   

• Future entrepreneurs, current sole proprietorships and legal entities;   
• Persons who do not reside and are not engaged in economic activities in the temporarily occupied territories of Ukraine;   
• Persons who are not engaged in any economic activity within the Russian Federation or the Republic of Belarus;   
• Enterprises that do not produce alcoholic beverages do not sell weapons and tobacco products.   
• Companies that are not participants in the securities market, private pension funds, pawnshops, insurance and credit organizations, investment funds and other similar business entities.   
• Recipients to whom economic sanctions or other restrictive measures have been applied;   
• Persons who are not at the stage of bankruptcy or liquidation of their enterprise;   
• Recipients must not have debts to the state;   
• Persons who have not been prosecuted for corruption crimes.   

It is important to know! For most applicants, there is an opportunity to receive up to UAH 8,000,000. However, if the main need of the business is to update the main means of production damaged as a result of the armed aggression of the Russian Federation, then the amount can reach up to UAH 16,000,000.   

What can grant funds be spent on?   

Grant funds can be spent on:   

• purchase of equipment for production — machine tools, technical equipment; 
• commissioning of purchased equipment; 
• delivery of purchased equipment; 

What are the financing conditions for business in the processing industry?   

The grant provides for joint financing of the project: part of the funds is provided by the state in the form of a grant, and the rest is contributed by the entrepreneur from his own savings or loan funds. The percentage of the grant depends on the location of the business and the specifics of its activities.  

We will analyze the possible options in more detail below.    

Conditions 80/20    

Such conditions apply to enterprises operating in de-occupied regions or zones close to hostilities (frontline), or in industries such as the production of UAVs (KVED 30.30) or printing activities (KVED 18.1).  

Also, companies that need to update equipment that was destroyed as a result of a rocket attack can agree to such conditions.    

Conditions 70/30   

You can count on covering 70% of the project costs if the funds are directed to the purchase of fixed assets of domestic production. 

Funding is not provided only for those manufacturers located in the city of Kyiv or Kyiv region, respectively.   

50/50 conditions   

For most regions of Ukraine, the classic formula applies, according to which 50% of the project cost is covered by the state, and the other 50% is covered by the entrepreneur.   

Job creation   

If you receive grant funds, you will need to create at least 5 new jobs. 

At the same time, their salary must be sufficient so that deductions from it over the next three years can return the corresponding grant amount provided by the state.    

Mandatory activities   

After receiving the grant, you commit to carry out activities for at least 3 years. You must also pay taxes to the budget, including for new employees, thereby “returning” the grant to the state. 

Funds can also be spent on expenses related to:    

• acquisition of fixed means of production (machine tools, technological equipment);   
• commissioning of new equipment;    
• delivery of purchased means for production;    
• replenishment of working capital (for businesses with KVED — 30.30).  

Note! Evaluate our work in another case study of obtaining a grant for a processing enterprise — Case: obtaining a grant for a processing enterprise for the production of plywood. 

What documents are required to apply for a grant? 

To receive a grant, it is imperative to submit an application and a business plan, the form of which is determined by the Ministry of Economy. 

In the application, you will have to indicate key information on the project and the business (type of activity, number of employees, how much is needed, what you plan to spend money on, etc.), and in the business plan itself, the goal of the project and its description, development strategy, budget, deadlines, and other information related to receiving the grant directly. 

A business plan should include a description of the product or services to be provided, market assessment, competitive advantages, marketing strategy and financial performance, etc. 

Who decides on the grant? 

After reviewing your application and business plan, the Ministry of Economy makes a decision on the grant. 

This may take some time, depending on the scope and complexity of the verification procedure. The corresponding notification of the decision is sent to the applicant at the e-mail address specified by him/her or at the number of the post office. 

If the decision to grant a grant is made, the applicant is provided with detailed information about the terms and conditions of use of the funds received. Control measures may also be carried out to ensure the use of the grant and the achievement of the planned goals specified in the business plan. 

If you are unable to fulfill these obligations to the state, then you will have to return the amount of the grant received. 

If you are interested in receiving a grant for a processing enterprise, then our specialists can help you with collecting the necessary documents and creating a business plan for applying. 

Our team knows the procedure for obtaining grants and has extensive experience in this field. 

We are ready to assist you at every stage of the process, from preparing documents to completing the application and submitting it.