Applicants seeking partial interest rate compensation on loans must meet the following requirements (enterprises that meet the criteria established by part 3 of article 55 of the Commercial Code of Ukraine):
- Registered within Zhytomyr region;
- Have no outstanding debts to the state or local budgets for taxes, fees, and other mandatory payments;
- Implement business projects aimed at creating new jobs;
- Operate within the types of activities defined by the above Regulations.
They operate within activities under the 2010 Classification of Economic Activities, including:
- Section 16: “Wood processing and manufacturing of products from wood and cork, excluding furniture; manufacturing of products from straw and other materials for weaving.”
- Chapter 31 Group 31.0: “Furniture manufacturing” (excluding class 31.03 “Mattress production”),
- All groups within Section 10: “Food production,”
- Section 23 Group 23.7: “Cutting, processing, and finishing of decorative and construction stone.”
Eligible Expenses:
- Acquisition of equipment and other fixed assets for production purposes;
- Modernization of production processes to reduce costs;
- Improvement of production process management;
- Implementation of energy efficiency technologies in production;
- Development of new products (goods);
- Business promotion and search for new markets.
Steps for Obtaining Loan Compensation:
I. These institutions work with the Department of Economic Development, Trade, and International Cooperation. They assess the borrower’s creditworthiness and the economic efficiency of the business project. Following this analysis, the institution will provide written consent for the loan if the requirements are met, specifying the borrower, loan amount, and loan term. Note: This is not a loan agreement but an indication of readiness to lend.
II. Entrepreneurs wishing to apply must submit two copies of the application to the selection committee, following the form in Appendix 1 of the Regulations. They also need to provide original documents and certified copies, as stated in Appendix 2. Each applicant may submit only one application during the Program period. Documents are submitted to the committee by the business entity or an authorized representative.
Attention! Incomplete documentation or non-compliance with the Regulations will result in unregistered and returned documents.
III. The main administrator informs committee members and applicants of the competition date.
The deadline for applications and documents will be clarified in the competition announcement (in this case, consult the department).
IV. The selection committee makes decisions on which business entities will receive compensation from the regional budget funds, documented in the tender committee’s protocol.
Attention! Winners are selected by the committee based on criteria outlined in section 4 of the Regulations.
Business projects are presented at the committee meeting by the heads of business entities or authorized representatives.
V. Decisions by the selection committee are made during meetings with at least two-thirds of the members present. Decisions are made by open vote, with a simple majority. In the case of a tie, the committee chair’s vote is decisive.
The committee’s decision is documented and signed by all present members. Dissenting members may include remarks and suggestions as part of the protocol.
VI. Within 10 (ten) working days after a decision, the selection committee will notify all participants of the competition results.
Expenses will be incurred in line with the master cooperation agreement between the main regional budget administrator and the financial institution. Financial institutions submit a weekly registry of new borrowers who have received loans to the main regional budget administrator, by the 15th of the following month at the latest.
A borrower registry is maintained, noting the amount of monthly compensation.
Compensation is provided monthly by transferring funds from the regional budget to a transit or current account specified in the main agreement or other contracts of the financial institution, which then allocates funds to borrowers’ accounts. Relevant statements or supporting documents are submitted to the main administrator.
Documents Required for Compensation:
- Application for partial compensation for agricultural machinery and equipment of domestic production.
- Payment order for equipment purchase.
- Act of acceptance.
- Certificate of state registration of equipment (if required).
- Extract from the Unified State Register of Legal Entities and Individual Entrepreneurs, confirmed by the state registrar, verifying that the applicant is neither bankrupt nor in liquidation.
- Certificate from the tax authorities confirming no outstanding debt for over six months to the state budget of Ukraine, the pension fund, or mandatory state social insurance funds.
- Bank consent to disclose information to the Ministry of Agrarian Policy about the agricultural producer, which is considered banking or personal data.
For additional compensation of 15% on purchased equipment, farmers with land areas up to 500 hectares and income up to 15 million UAH or agricultural cooperatives with areas up to 100 hectares must submit to PrivatBank a copy of the farm’s statute (for legal entities) or a copy of the family farm creation agreement (for farms without legal entity status under article 81 of the Law of Ukraine “On Farming”).
- Documents confirming ownership or land use rights.
- Application for agricultural compensation of 15%.
- Announcement of the competition: link.
Definition of small and medium-sized enterprises (part 3 of article 55 of the Commercial Code of Ukraine): link.
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