Microgrant Program in Ukraine: Up to ₴250K for New Businesses

A microgrant for your own business is a non-refundable, interest-free state aid to individuals and business entities for the creation or development of their own business. How to get it is explained in detail on the website of the State Employment Service.

Microgrant amount

• From 50 to 150 thousand hryvnias, provided that at least 1 workplace is created and an employee is employed.
• 75 thousand hryvnias if you register as a sole proprietor.
• Up to UAH 250 thousand, provided that at least 2 new jobs are created and employees are employed.

Recipients aged 18 to 25 are eligible for a microgrant of up to UAH 150 thousand.

How to receive funds from the state for your own business

1. Create an application and business plan. Find the approved form here.
2. Submit the application and business plan through the Diia portal.
3. Have an interview at the regional employment center.
4. The State Employment Center will make a decision on granting a microgrant and report the results to your personal account on the Diia portal.
5. Within 20 working days from the date of receipt of the notification, if you are an individual, register as an individual entrepreneur or create a legal entity - contact JSCOschadbank, conclude a microgrant agreement and submit documents for opening an account.
6. Use the microgrant funds for the intended purpose and start or develop your business.

Deadlines for submitting applications and deadlines for making a decision on granting a microgrant are available here.

If the applicant is an individual, in case of a decision to provide a microgrant, he or she must establish a business entity - a legal entity or register as an individual entrepreneur. Business entities that receive microgrants (individual entrepreneurs or legal entities) must be micro-entrepreneurs or small businesses in accordance with the Commercial Code of Ukraine.

Who can receive a grant

Citizens of Ukraine - individuals, individual entrepreneurs, legal entities that:

• are not located and do not conduct their business activities in the temporarily occupied territories of Ukraine and territories of active hostilities;
• do not carry out economic activities in the territory of the Russian Federation and the Republic of Belarus;
• are not classified as persons subject to sanctions;
• are not bankrupt or in the process of bankruptcy or liquidation;
• are not credit organizations, insurance organizations, investment funds, non-state pension funds, professional securities market participants, pawnshops;
• do not produce or sell weapons, alcoholic beverages, tobacco products, exchange currencies, except for the production (without alcohol) or sale of grape wines and honey beverages;
• no court decisions on bringing to criminal liability, etc.

Frequently asked questions and answers

How are microgrant funds used?

To make a targeted payment for the microgrant provided for in the agreement, the recipient submits documents (invoice, receipt, invoice, etc.) to the authorized bank, and the authorized bank pays the expenses for the purposes specified in the documents.

What happens if a microgrant recipient is called up for military service? Does the person have to return the funds received in this case?

The program may or may not be suspended. If you suspend the program, you must provide the relevant documents to the Employment Service, and after demobilization, continue to run your business. If you continue doing business, you must provide a power of attorney to a person authorized by the recipient.

When does the period for using the funds and creating jobs start?

From the moment the funds are credited to the recipient's special account.

What are the further actions of a person who applied for a microgrant but was denied as having failed a business reputation check (criminal proceedings are pending)?

After providing confirmation of the absence of court cases (certificate/extract generated by the Diia portal on criminal record and absence of criminal proceedings), the recipient has the right to re-submit a microgrant application and business plan in the form approved by the Ministry of Economy.

In the grant application, is the section "Revenue and Expenditure Plan for 36 Months" to be filled in taking into account the revenues of the existing business or only the planned business?

The revenue plan provides for the possibility to indicate in a separate line the revenues from the existing business.

What taxes are included in the repayment of the microgrant?

Actually paid taxes and fees include: corporate income tax, environmental tax, rent, single tax, personal income tax paid on income received from the business activities of such an individual, and personal income tax paid for employees in accordance with the Employee Procedure.

Is it possible to change the city of business implementation after the grant has already been received and an agreement with an authorized bank has been signed?

Yes, you can, you need to provide a certificate (form 20-OPP) on the change of place of business and open a special account in an authorized bank within the time limits established by the Procedure for receiving the grant.

Ігор Льов