For certain categories of Ukrainian micro, small, and medium-sized businesses, grant compensation for PrivatBank loan expenses is provided. The basic support amount is up to 10% of the financing amount or paid expenses, and for enterprises with activities or projects in frontline regions – up to 25%. The maximum per enterprise is €200,000.

PrivatBank and the European Investment Bank Group signed a corresponding agreement for €3.4 million on November 12. The grants will complement loans to eligible enterprises under the EIB Group guarantee programs through PrivatBank.

The support is intended for the purchase of fixed assets – the enterprise's long-term assets. For frontline businesses, compensation for working capital loans is also provided, meaning financing of current operations.

Target groups include enterprises with assets damaged or destroyed by the war, businesses in high military risk zones, companies founded or managed by veterans or internally displaced persons. Support is also provided for enterprises where veterans or displaced persons make up more than 20% of employees or hold more than 30% of managerial positions.

Additionally, companies whose ownership or management is primarily held by women or entrepreneurs under 36 years old are included, as well as startups and enterprises registered less than three years ago.

The €200,000 limit does not mean an equal payment to each participant. For example, if the bank recognizes eligible expenses of €100,000, compensation at the maximum basic rate of 10% would be €10,000, and at the increased rate of 25% – €25,000. This is a conditional example: the detailed procedure for determining the amount from which the grant is calculated is not disclosed in the announcement.

The compensation is stated as non-refundable, but it is linked to the loan agreement. The loan itself must be serviced and repaid under the terms of the agreement.

The November 12 announcement does not include a start date for applications, a list of required documents, or a separate application form. Therefore, belonging to one of the listed categories does not yet mean grant approval: the enterprise's and specific loan's compliance with the program conditions must be confirmed with the bank.

The program is funded by the European Union and implemented by the European Investment Fund, part of the EIB Group, as part of the Ukraine Facility.

Based on materials from: PrivatBank, European Investment Bank Group.