Financial assistance for small agribusinesses

The international humanitarian organization Mercy Corps, with support from the Howard G. Buffett Foundation, has launched the Ukraine Agriculture Support Program. The goal of this program is to help restore agricultural activities and mitigate the consequences of the war for affected local families and those displaced by the war, as well as for farmers and businesses closely connected to agriculture.

The program is implemented in the Dnipropetrovsk, Donetsk, Zaporizhzhia, Kirovohrad, Kyiv, Mykolaiv, Odesa, Poltava, Sumy, Kharkiv, Kherson, Cherkasy, and Chernihiv regions (excluding areas where active hostilities continue, as well as locations with restricted access or high risks to life and business operations), in cooperation with partner organizations:

• NGO “East Ukrainian Agricultural Advisory Service” (Donetsk, Poltava, and Cherkasy regions);

• Charitable Organization “PERSHI” Charitable Foundation – implemented by the same team previously working at NGO “Council of Women Farmers” (Zaporizhzhia, Dnipropetrovsk, and Kirovohrad regions);

• Charitable Organization “LASKA” Charitable Foundation (Mykolaiv, Odesa, and Kherson regions);

• Charitable Organization “PIDTRYMKA AGRO” Charitable Foundation – implemented by the same team previously working at the agricultural cooperative “Zernovyi” (Kyiv, Kharkiv, Sumy, and Chernihiv regions).

Representatives of small and medium-sized agricultural businesses are invited to participate in the program if they:

• are able to provide information and evidence of how their business activity was affected by the war, and how financial assistance will support its recovery;

• already have or plan to restore or expand mutually beneficial cooperation with agricultural households or other small farmers within their business model. Examples of such cooperation include: providing services that support farming activities; supplying or producing resources necessary for effective farming; purchasing agricultural products; or enabling access to markets, etc.;

• clearly justify the need for financial assistance.

It is expected that with the assistance provided, the business will be able to restore and/or increase its profitability and contribute to the development of agricultural activities of local households or other small farmers.

The average amount of financial support is USD 75,000, provided in the Ukrainian hryvnia equivalent at the current exchange rate of the National Bank of Ukraine (NBU). The amount of support may be higher or lower depending on the business’s needs. Grant recipients must keep records, make full calculations, and pay all taxes in accordance with the laws of Ukraine.

Representatives of small and medium-sized agricultural businesses are invited to participate in the program if they:

• are able to provide information and evidence of how their business activity was affected by the war, and how financial assistance will support its recovery;

• already have, or plan to restore or expand, mutually beneficial cooperation with agricultural households or other small farmers within their business model. Examples of such cooperation may include: providing services that support farming activities; supplying or producing resources necessary for effective farming; purchasing agricultural products; or enabling access to markets, etc.;

• clearly justify the need for financial assistance.

Eligibility criteria for participation in the program:

• official registration and absence of any legal or regulatory barriers to conducting business activities in accordance with the requirements of Ukrainian legislation;

• investment of own funds of up to 50% of the amount of financial assistance. The amount of own contribution is determined individually and depends on the financial capacity of the program participant.

To apply for the program, you need to register on the official website of the Ukraine Agricultural Support Program  https://uasp.mercycorps.org/ and fill out an online form.

The average processing time for applications is 8 weeks. This period may vary depending on the number of applications submitted.

• Provided information and evidence of how the business activity was affected by the war, and how financial assistance will support its recovery;
• Mutually beneficial cooperation with agricultural households or other small farmers. Examples of such cooperation may include: delivering services that support farming activities; supplying or producing resources required for effective farming; purchasing agricultural products; or ensuring access to markets, etc.;
• Justification of the need for financial assistance;
• and other relevant information.