The European Union and the International Finance Corporation (IFC) have signed a program to expand access to financing for Ukrainian small and medium-sized businesses. Among the priorities are enterprises affected by the war, veteran-owned businesses, and companies that employ veterans.

The MSME+ Growth Catalyst program is intended to help enterprises continue operating, preserve jobs, and invest in recovery. The European Commission announced the agreement on November 12 following the EU-Ukraine investment conference in Warsaw.

The support includes €125 million in EU guarantees and €21.25 million in grant financing—together, €146.25 million. According to European Commission expectations, the program will help mobilize over €600 million in new investments.

For an entrepreneur, the main benefit is the opportunity to obtain financing amid high war risks, rather than a promise of direct payment from a general fund. Guarantees reduce risks for the financing party and thereby help expand businesses' access to funding.

As the European Commission explains in its description of the Ukraine Facility, guarantee instruments to support small businesses can, among other things, reduce risks for Ukrainian banks' lending operations. However, a guarantee itself does not relieve an enterprise from repaying a loan: the borrower's obligations are determined by the terms of the agreement.

The grant component is a separate support instrument. However, the announcement did not disclose how exactly the €21.25 million will be distributed and what portion will be available to individual enterprises. The entire amount cannot be presented as an already open competition for non-repayable grants.

The expected investments of over €600 million are financing that the program is intended to help attract, not money already transferred to businesses. This sum should not be added to €146.25 million in guarantees and grants as two independent aid packages.

The European Commission links the need for support to the consequences of Russian attacks on infrastructure, disruption of logistics and supply chains. The program promises special attention to the most vulnerable enterprises, including those directly affected by the war and businesses managed by veterans or that employ them.

The European Commission's announcement does not provide application procedures, the start date for accepting applications, the financing limit per company, or the terms of specific products. Therefore, it is not yet possible to promise entrepreneurs a specific interest rate, reduced collateral requirements, or guaranteed approval of an application.

To assess the accessibility of support, businesses will need the terms of a particular bank or other financial partner: requirements for enterprises, permissible financing purposes, terms, costs, and collateral. The signing of the program creates the basis for such support but does not replace the rules for its provision.

Based on materials from: European Commission.

Photo: Flags of Ukraine and the EU at the European Commission building in Brussels, August 21, 2026. Archive photo: © European Union, 2026 / Xavier Lejeune, Wikimedia Commons, CC BY 4.0.