How to get a grant for your own business

Since July 1, the Ukrainian government has introduced special programs to support small and medium-sized businesses and the unemployed. The total assistance budget is over 40 billion hryvnias. These funds are being allocated from the reserve fund.

We have already written about the government's plans to support the Ukrainian IT business.wroteToday we'll talk in more detail about who can get help and how.

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Who does the Cabinet of Ministers plan to finance?

According to the Ministry of Economy, the war has left approximately 1 million Ukrainians unemployed. It is also known that approximately 600,000 entrepreneurs have been forced to curtail their operations.

The Cabinet of Ministers has decided to allocate subsidies for the creation of new jobs and the organization of entrepreneurial activity. This will enable people to earn a stable income to provide for their families and support Ukraine's economy.

Priority categories:

• entrepreneurs;
• people who have decided to start a career in the IT field;
• representatives of the agricultural sector.

Several grant programs have been prepared aimed at:

• creation of new jobs;
• grants for starting your own business;
• assistance in restoring and developing your own business.

The Basics of Getting a Business Startup Grant

Grant amount— from 50 thousand to 250 thousand UAH.

Applications are reviewed in stages.— the entrepreneur must receive a response within 10 days after the final date for submitting the application at this stage.

Deadline for the second wave of applications— until July 24, 2022. 

Application review period at this stage— until August 5, 2022.

Do I need to repay the grant amount?— The recipient of the grant must return it to the state if he does not pay taxes and fees on this amount within 3 years.

The procedure for providing microgrants for the creation or development of one's own businessapprovedby the Cabinet of Ministers Resolution of June 21, 2022 No. 738.

Important!

Schedule of application stagesAnddates of the deadlines for their consideration posted on the “Diya” portal.

The section “Grant for your own business” also contains information aboutmaximum amounts of microgrants for creating or developing one's own business. 

Consultations on the program can be obtained offline at the nearest Oschadbank branch.

The budget fund for business launches is UAH 5 billion: the state plans to issue 20,000 grants.

Business development grant

Who can apply for financial support from the state:

1. any citizen of Ukraine who plans to become an entrepreneur;
2. A sole proprietor who is already engaged in business activities and wishes to expand them;
3. a legal entity whose founders are only individuals who are citizens of Ukraine.

Conditions for receiving a grant:

• If an applicant wants to receive a grant of up to UAH 250,000, he must employ two people; for a grant of up to UAH 150,000, he must employ one person;
• the intended purpose of the project must meet the requirements for the provision of a microgrant;
• The expected results of the project implementation (fulfilment), specified in the business plan, must be clear and transparent.

Additional requirements:

• the applicant cannot be the owner of another business or work for another enterprise;
• not to reside or carry out economic activities in the temporarily occupied territory;
• not to carry out business activities on the territory of Russia;
• not be under sanctions;
• not be involved in bankruptcy proceedings;
• not be subject to criminal liability for corruption according to a court decision;
• have no debt to the budget.

How to submit an online application on the “Diya” portal

1. Register or log in using BankID or electronic signature (EDS).
2. Upload a business plan to the appropriate form (a sample form is provided and can be found on the portal).
3. Sign with an electronic signature and submit the application.

Attention!An entrepreneur needs to use the sole proprietor's key, and a company representative needs to use the key of the head of the legal entity in the company's EDRPOU.

Application review process

The business plan is evaluated by specialists from the Regional Employment Center and experts from Oschadbank. The decision on grant award is made by the State Employment Service.

Employment Center 

1. Invites the client to an online conversation.
2. Based on its results, an assessment is formed using a point system approved by the Ministry of Economy.
3. Those who receive more points have a greater chance of receiving grant assistance.

Oschadbank

1. Checks the applicant's business reputation.
2. If a positive decision is made to provide a grant, the bank identifies the client, opens an account for them, and transfers the financial assistance to it.
3. Repeated applications submitted by the same applicant will not be considered.

Please note: Funds must be used for the intended purpose specified in the agreement.

This could be:

• purchase of equipment;
• equipment leasing;
• purchase of raw materials;
• rent (no more than 25% of the grant amount).

The employment center may conduct an inspection or send a "mystery shopper" to the applicant's home. If misuse of funds or failure to meet job creation requirements is proven, the unfortunate entrepreneur will be required to repay the state the difference between the grant amount and the taxes paid.

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To ensure the recognition of a web resource, a cool one is requireddomain. 

The basis of online business security is:

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