The Cabinet of Ministers has introduced one-time assistance and preferential loans for businesses to purchase energy equipment
The Cabinet of Ministers has approved a decision to provide additional support to small and medium-sized businesses amid the energy crisis caused by Russian shelling. The aid package includes a one-time financial payment for entrepreneurs and preferential loans for the purchase of energy equipment, Prime Minister Yulia Svyrydenko said on Telegram.
The first measure provides one-time financial assistance to individual entrepreneurs in the second and third groups who work in socially important sectors. These include catering establishments, pharmacies, coffee shops, grocery stores, bakeries, and other essential services. The amount of the payment will range from 7,500 to 15,000 hryvnia, depending on the number of employees, provided that there is at least one employee.
Applications can be submitted via the Diya portal. Partner banks will then verify the applications, and the State Employment Service will transfer the funds. The money received may be used to purchase and repair energy equipment, fuel for generators, and pay for electricity.
The second area of support provides 0% interest loans for energy equipment. Businesses that meet the conditions of the 5-7-9 programme will be able to attract targeted financing for the purchase of generators and batteries. The difference between the market rate and the preferential rate will be compensated by the state through the Entrepreneurship Development Fund.
Loans are provided by nearly 50 partner banks for a term of up to three years. The maximum amount of financing is up to 10 million hryvnia.
The government emphasised that despite emergency power cuts, businesses continue to operate and incur additional costs. The Prime Minister thanked entrepreneurs for their resilience and responsibility, noting that the decisions taken will help to preserve jobs and support the functioning of resilience centres.
Against the backdrop of the energy crisis, experts are noting a deterioration in the service sector. Restaurant consultant and director of the Restaurants of Ukraine analytical centre Olga Nasonova previously stated that by spring, every fifth establishment in Kyiv could cease operations, which is about 20 per cent of the market. According to her, since the beginning of January, due to frosts and constant power cuts, restaurant attendance has almost halved.
The Ministry of Economy of Ukraine will announce the detailed conditions and start date of the programmes in the near future.
Ministry of Economy of Ukraine, State Employment Service, Entrepreneurship Development Fund, Dія, Prime Minister Yulia Svyrydenko
