Affordable Loans 5-7-9%: the state programme that cuts borrowing costs for business

The Affordable Loans 5-7-9% program is a state-backed financing instrument administered by Ukraine’s Entrepreneurship Development Fund (National Development Institution). Designed to ease borrowing costs for the commercial sector, the mechanism operates by compensating a portion of commercial interest rates through accredited lending institutions.

Under this arrangement, participating enterprises secure standard bank loans while the state offsets interest costs, resulting in an effective borrower rate of 5%, 7%, or 9% per annum. This mechanism provides subsidized debt financing rather than non-repayable grants, requiring borrowers to repay the principal and designated interest in full.

The program is active and open to micro, small, and medium-sized enterprises operating in Ukraine. The donor materials do not state a specific closing deadline, maintaining continuous processing through authorized commercial banking partners.

What is funded

The program provides interest rate compensation on commercial business loans rather than direct cash transfers. The state covers the difference between standard market rates and the preferential rate, leaving the borrower with an annual cost of borrowing set at 5%, 7%, or 9%.

Because the available documentation details the financial framework rather than individual line-item limits, specific credit caps and permissible uses of funds are defined by the overarching state procedure and individual partner bank policies. The facility is structured to support ongoing business activities through reduced borrowing overhead.

Who can apply

Eligibility extends to micro, small, and medium-sized enterprises (SMEs) as well as individual entrepreneurs registered in Ukraine. The program is designed to facilitate access to capital across diverse enterprise sizes within the SME classification.

The official extract does not list exclusions for specific commercial sectors or industries. Prospective borrowers must confirm their regulatory eligibility and SME status under the governing state criteria before submitting formal loan requests.

Conditions and requirements

All financing is governed by Cabinet of Ministers of Ukraine Resolution No. 28 of 24 January 2020 (as amended). Recipients must sign formal loan agreements with approved financial institutions and meet standard creditworthiness criteria established by the lenders.

Practical tip. Review your current financial statements and approach an authorized partner bank where your company already maintains an active commercial account. An established operational history with a participating lender can accelerate the required risk evaluations and compliance checks.

How to apply

Applications are processed directly through authorized partner financial institutions rather than through the fund itself. More than 40 accredited banks participate in the rollout, including major state-owned and private institutions such as PrivatBank, Oschadbank, Ukrgasbank, Ukreximbank, and Raiffeisen Bank.

Interested businesses must select a participating lender from the authorized directory and supply the requisite loan documentation in line with Resolution No. 28. Program administration inquiries may also be addressed to the Entrepreneurship Development Fund via its Kyiv office or institutional email.

Applications are submitted on the donor’s page: ndi.gov.ua.