EU4Business - EBRD Credit Line with incentives
The EU4Business-EBRD Credit Line combines loan and leasing finance with free technical assistance and cash-back incentives reducing investment costs, making it easier for businesses to modernize and grow.
Co-funded by the EU4Business initiative, the program is tailored to help MSMEs align with EU Directives, improve product and service quality, and enhance environmental responsibility. The programme promotes open market access for countries like Ukraine under the Deep and Comprehensive Free Trade Area (DCFTA). It provides MSMEs with the tools they need to increase competitiveness and take advantage of export opportunities, leveraging Ukraine’s relatively low cost base to compete effectively within the EU and regional markets. The investment incentives of 10-15% provided by the EU are calibrated for the support for investments in more complex and expensive technologies.
Over the last few years, the EU4Business-EBRD Credit Line Programme has become especially relevant for Ukrainian MSMEs, helping them address the unprecedented challenges posed by Russia’s full- scale war of aggression on Ukraine. It facilitates MSMEs’ most affected by the war, including businesses that suffered asset loss and/or destruction under the Enterprise Renaissance Window (“ERW”) and those supporting the reintegration of veterans and war-affected persons under the Veterans and War-Affected Persons Reintegration Window (“VRW”) access to additional incentives that reduce investment costs by another 10-15% (in addition to the basic incentive).
Furthermore, under the Ukraine Investment Framework (UIF), the Programme aims to allocate at least 50% of the available investment incentives to vulnerable MSMEs. This, in addition to companies under the Enterprise Renaissance Window (“ERW”) and Veterans and War-Affected Persons Reintegration Window (“VRW”), includes businesses reintegrating internally displaced persons, persons with disabilities, MSMEs relocated from or operating in war-affected territories of Ukraine, women-led and youth-led companies.
EU4Business - EBRD Credit Line with incentives Loan Types
Three loan types are available under the EU4Business-EBRD Credit Line:
Co-funded by the EU4Business initiative, the program is tailored to help MSMEs align with EU Directives, improve product and service quality, and enhance environmental responsibility. The programme promotes open market access for countries like Ukraine under the Deep and Comprehensive Free Trade Area (DCFTA). It provides MSMEs with the tools they need to increase competitiveness and take advantage of export opportunities, leveraging Ukraine’s relatively low cost base to compete effectively within the EU and regional markets. The investment incentives of 10-15% provided by the EU are calibrated for the support for investments in more complex and expensive technologies.
Over the last few years, the EU4Business-EBRD Credit Line Programme has become especially relevant for Ukrainian MSMEs, helping them address the unprecedented challenges posed by Russia’s full- scale war of aggression on Ukraine. It facilitates MSMEs’ most affected by the war, including businesses that suffered asset loss and/or destruction under the Enterprise Renaissance Window (“ERW”) and those supporting the reintegration of veterans and war-affected persons under the Veterans and War-Affected Persons Reintegration Window (“VRW”) access to additional incentives that reduce investment costs by another 10-15% (in addition to the basic incentive).
Furthermore, under the Ukraine Investment Framework (UIF), the Programme aims to allocate at least 50% of the available investment incentives to vulnerable MSMEs. This, in addition to companies under the Enterprise Renaissance Window (“ERW”) and Veterans and War-Affected Persons Reintegration Window (“VRW”), includes businesses reintegrating internally displaced persons, persons with disabilities, MSMEs relocated from or operating in war-affected territories of Ukraine, women-led and youth-led companies.
EU4Business - EBRD Credit Line with incentives Loan Types
Three loan types are available under the EU4Business-EBRD Credit Line:
- Pre-Approved ApproachSome projects only require the upgrade of a standard piece of equipment. For conventional EU-compliant equipment. We have developed the List of Eligible Technologies (LET) and for green technologies the Green Technology Selector (GTS). Both can be financed directly by our Partner Financing Institutions with financing up to the equivalent of EUR 300,000. A 10% grant is available upon successful verification of the project’s implementation.
- Simplified ApproachFast track procedures are in place for smaller loans of up to EUR 300,000 for investments in improving product quality and safety in the agriculture and food processing sectors, i.e. Sanitary and phytosanitary (SPS) measures. The project consultant simply checks the investment plan to ensure it complies with the very straightforward eligibility requirements. Upon verification of the project’s successful implementation a grant of up to 15% is available for ‘green’ projects, i.e. those leading to energy savings and carbon emission reduction and up to 10% for investments in conventional EU-compliant technologies.
- Complex ApproachLoans of up to EUR 3 million are available for (almost) any modernization project in (almost) any industry or service sector. Investments requiring a more complete technical and financial evaluation can benefit from free technical assistance to optimize the investment plan and to prepare a business plan. Upon verification of the project’s successful implementation a grant of up to 15% is available for ‘green’ projects, i.e. those leading to energy savings and carbon emission reduction and up to 10% for conventional EU-compliant projects.
Additional Incentives for MSMEs Affected by the War
Additional support is available for MSMEs most affected by the war:
Additional support is available for MSMEs most affected by the war:
- The Enterprise Renaissance Window (‘ERW’) offers up to 15% additional incentives for businesses that suffered asset loss and/or destruction (but not higher than the verified costs of non-recovered war damages)
- The Veterans and War-Affected Persons Reintegration Window (‘VRW’) supports MSMEs engaged in the reintegration of veterans and war-affected persons with additional incentives of 10-15%, depending on the level of engagement (see below for relevant categories).
Project Type
Basic Incentive
Additional Incentive
Total Incentives Combined
Pre-Approved Technologies (LET/GTS)
10%
+ ERW: 15%
or + VRW Category 1*: 15%
or + VRW Category 2**: 10%
= 25%
= 25%
= 20%
SPS/Complex non-green Technologies
10%
+ ERW: 15%
or + VRW Category 1*: 15%
or + VRW Category 2**: 10%
= 25%
= 25%
= 20%
SPS/Complex green Technologies
15%
+ ERW: 15%
or + VRW Category 1*: 15%
or + VRW Category 2**: 10%
= 30%
= 30%
= 25%
* Category 1: The MSME is a sole entrepreneur who is a war veteran, or a legal entity majority (more than 50%) owned and/or led by the war veteran(s); or has war veterans representing more than 20% of its total permanent staff; or services war veterans that comprise at least 20% of its clients or revenues.
** Category2: The MSME has war veterans representing more than 10% of its permanent employees; or services war veterans that comprise at least 10% of its clients or revenues; or is majority owned and/or led by immediate family member of a war veteran (a spouse, a son/daughter, and/or parents), or is a war-affected person or is a majority owned and/or led by war-affected person(s), including people with disabilities resulting from the war, volunteers of the Territorial Defence Forces of the Ukrainian Armed Forces and family members of deceased (fallen) defenders of Ukraine.
** Category2: The MSME has war veterans representing more than 10% of its permanent employees; or services war veterans that comprise at least 10% of its clients or revenues; or is majority owned and/or led by immediate family member of a war veteran (a spouse, a son/daughter, and/or parents), or is a war-affected person or is a majority owned and/or led by war-affected person(s), including people with disabilities resulting from the war, volunteers of the Territorial Defence Forces of the Ukrainian Armed Forces and family members of deceased (fallen) defenders of Ukraine.
Kyiv, Ukraine
+38 050 4623732
+38 050 4623732