The state program “Affordable Loans 5-7-9%” continues to actively support the development of small and medium-sized enterprises in Ukraine by providing favorable conditions for obtaining loans for various business needs.
Lviv region continues to be among the top five regions in terms of the volume of loans attracted under various programs. Thus, according to the latest information, since the beginning of the year, 533 farmers in Lviv region have attracted UAH 3.4 billion in loans. Including under the program “Affordable Loans 5-7-9”, 377 agricultural producers received loans in the amount of UAH 1.4 million.
One of the key advantages of the program is low interest rates for working capital loans (13%) and investment loans (5% to 9%). There is also a possibility of an additional discount of up to 2% if new jobs are created.
Small farms with a cultivated area of up to 500 hectares can obtain loans guaranteed by the Partial Guarantee Fund for Agricultural Loans. Quite often, such farms do not have adequate collateral to attract loans. Today, Ukrgasbank, Oschadbank and ProCredit Bank Ukraine have developed loan products with the Fund.
“There are approximately 600 small farms in Lviv region that cultivate up to 500 hectares of land. Now small farmers who are registered with the State Agency for Agrarian Development can get a loan to replenish working capital, an investment loan to expand their production capacity, and purchase land under the guarantees of the Partial Credit Guarantee Fund,” said Lyudmyla Honcharenko, Deputy Director and Head of the Department of Agricultural Development at Lviv Regional State Agency for Agrarian Development.