Polish companies can already apply for preferential loans under the Ukraine Facility mechanism. The preferential loan program is an opportunity for financial support for entrepreneurs interested in participating in the reconstruction and development of Ukraine’s infrastructure. Details are presented in today’s material.
Who grants loans
Bank Gospodarstwa Krajowego (BGK) plays a key role in organising and supervising the loan granting process.
The program is implemented in cooperation with several financial institutions, which are responsible for accepting applications and granting loans. These include:
- Bank for Environmental Protection,
- Society for Social and Economic Investments,
- Lublin Development Foundation,
- Biłgoraj Regional Development Agency.
Benefits of preferential terms
Interest rate
Depending on the nature of the project and the type of cooperation, three interest rates are possible:
- 2% per annum – the basic rate available for all eligible projects;
- 1.75% per annum – for companies that document cooperation with Ukrainian partners;
- 1% per annum – for investments in the medical sector, especially in the production of medical equipment and supplies.
Repayment period
Loans can be divided into installments even into:
- 10 years – for most investments;
- 12 years – if the funds are allocated to the development of resources necessary to participate in infrastructure projects in Ukraine, such as roads, railways, energy, water supply or public and housing construction.
Grace period in repayment
Entrepreneurs can also take advantage of the deferral of repayment of capital:
- up to 12 months in standard cases;
- up to 24 months – if the value of the loan exceeds PLN 5 million and is intended for construction investments.
Budget and maximum loan amount
The total budget allocated for preferential loans is PLN 250 million. A single enterprise can apply for financing of up to PLN 10 million.
Who can apply
Loans are available to businesses regardless of their legal form. The condition is:
- having creditworthiness;
- running a business, having a registered office, branch or permanent place of business in the territory of Polish.
This opens the door for both large companies and smaller enterprises that want to enter the Ukrainian market or strengthen their presence in the region.
What can you use the loan for?
The range of possible applications of funds from the programme is wide. According to Bank Gospodarstwa Krajowego, the financing can be used, m.in, for:
- undertakings related to the implementation of contracts for entities from Ukraine, including:
- organization of transport, storage and logistics related to the delivery of goods and services to the population, as well as construction materials, machinery, technology and other resources needed for the implementation of projects in Ukraine,
- development of the company’s resources necessary to participate in investments related to the reconstruction and development of Ukraine’s infrastructure (m.in. road, rail, energy, water supply network, public utility and housing construction),
- services for the preparation of feasibility studies or investment projects for the needs of investments carried out in Ukraine,
- financing the activities of companies from the medical industry related to the production of medical products, in particular prostheses and medical dressings, which will be supplied to Ukraine.
- undertakings related to the import of services and products supplied by contractors from Ukraine,
- undertakings related to the supply of goods and services to companies that participate in the restoration of Ukraine’s economic potential, directly for the purpose of carrying out this activity
Where and how to apply
Detailed information, application forms and instructions for submitting documents can be found on the websites of the above-mentioned financial institutions that are responsible for accepting applications and granting loans. It is worth reading them in advance to prepare full documentation and increase your chances of obtaining financing.