Business grants from Agroprosperis Bank and EFSE

The grant programme is implemented by Agroprosperis Bank in cooperation with the European Fund for Southeast Europe (EFSE) to support Ukrainian micro, small, and medium-sized enterprises affected by the challenges of the war.

The programme aims to:

• help businesses adapt to new operating conditions, improve liquidity, and strengthen resilience and competitiveness;
• support business continuity and the preservation of jobs.

The programme is intended for businesses that have already obtained or plan to obtain financing from Agroprosperis Bank and are eligible to receive international non-repayable financial assistance (a grant) to support their development.

The grant programme is intended for micro, small and medium-sized enterprises (SMEs) that belong to the defined target groups.

Eligible applicants include:

• farms cultivating up to 2,000 hectares of land;
• farms with livestock numbers not exceeding the specified limits, including:
  • up to 25,000 pigs;
  • up to 800 dairy cows or 1,000 head of cattle (beef farms);
  • up to 500,000 broilers;
  • up to 300,000 laying hens;
  • up to 3,000 ewes;
  • up to 800 dairy goats;
  • up to 35,000 turkeys;
  • up to 15,000 ducks.
• businesses significantly affected by the war;
• businesses investing in essential recovery activities.

The program provides for only one grant per business group. Even if there are several affiliated companies, only one of them may participate in the program.

Under the grant programme, applicants may receive non-repayable financial assistance of up to EUR 20,000. The amount of grant support depends on the loan amount and the purpose of the financing.

Key funding conditions include:

• maximum grant amount – EUR 20,000;
• the grant may cover up to 20% of the loan amount:
  • 20% for investment projects;
  • 10% for working capital financing;
  • 15% for mixed purposes;
• an additional 5% grant support is available for vulnerable groups.

Applicants are required to provide a minimum own contribution:

• at least 10% for investment projects;
• at least 5% for working capital financing.

The grant is provided together with a dedicated loan as its non-repayable component, and both must have the same financing purpose. Grant support is not available for refinancing existing loans, except where this forms part of the enterprise’s standard lending activities. Only one grant may be awarded to a single beneficiary, and where a company belongs to a group of related enterprises, only one company from the group may submit an application.

The grant programme supports both investment and liquidity needs for different categories of businesses, depending on their activities and recovery priorities.

Key supported activities include:

• For agricultural enterprises of all ownership types:
  • investment support for restoring production, storage facilities, machinery and equipment, including relocation, certification, modernisation, and acquisition of fixed assets;
  • liquidity support for working capital needs, including seeds, fertilisers, fuel, and other agricultural resources.
• For businesses significantly affected by the war:
  • investment support for restoring damaged assets, including modernisation, reconstruction, relocation, and certification;
  • liquidity support for purchasing raw materials, maintaining business operations, and preserving jobs;
  • comprehensive support combining investment and liquidity financing to ensure business continuity and recovery.
• For MSMEs investing in critical recovery:
  • investment support for restoring and modernising production facilities, machinery and equipment, including energy generation, automation, digitalisation, ESG implementation, and certification;
  • support for repairing or replacing vehicles, equipment, and digital infrastructure damaged or destroyed as a result of hostilities.

Application process:

• Complete the grant application and loan application (if required).
• Submit the required documents.
• Sign the loan agreement and receive financing.
• Provide supporting documents.
• Receive the grant.

The entire process is conducted as part of a standard bank credit review; once the loan and grant have been approved, a grant agreement is signed, and the funds are disbursed upon submission of invoices and confirmation of payment.

To receive grant support, applicants follow a structured application and financing process.

The main steps are:

• complete a grant application and, where required, a loan application;
• submit the required documentation for funding assessment;
• following approval, sign a loan agreement with the bank and receive the funds;
• provide the required supporting documentation;
• upon completion of the required procedures, receive the grant funding.

To participate in the grant programme, applicants must meet basic eligibility requirements. In particular, the business must:

• have a stable credit history, with no outstanding overdue loans or ongoing legal claims;
• ensure that at least 51% of the beneficial owners are Ukrainian citizens;
• be registered in territory under the control of Ukraine and not be undergoing liquidation or restructuring.

The grant programme is implemented with the support of the European Fund for Southeast Europe (EFSE).

Key provisions include:

• EFSE is an investment fund established in 2005 to promote economic development and prosperity in Southeast Europe and the Eastern Neighbourhood.
• The fund was established by KfW Development Bank with financial support from the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission.
• EFSE operates as a public-private partnership, attracting capital from donor agencies, international financial institutions, and institutional investors.
• The fund is jointly managed by Finance in Motion and Hauck & Aufhäuser Fund Services S.A. (Luxembourg).

The information also states that Finance in Motion structures, manages, and advises investment funds, investing in emerging markets through regional financial intermediaries, direct investments, advisory services, and capacity development.