Enterprise Renaissance & Veteran Reintegration

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’ access to long-term funding and reduces investment costs by 10-30%, depending on the sub-borrower type and investment project complexity. The investment incentives are calibrated to provide additional support for investments in more complex and expensive technologies and for 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”). See below for details.

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 ERW and 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 (click here for details). 

The ERW and VRW Incentives

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).


These incentives are in addition to the incentives provided for Pre-Approved, SPS and Complex projects. The maximum amount of the combined investment incentives to each sub-borrower shall not exceed 30% of each sub-project/loan and the cumulative amount of €300,000 for all project investments/loans under the Programme. The criteria and conditions for each of the additional incentive categories are described in the information blocks  below.

Click here to learn more about EU and EBRD’s Financial Inclusion Recovery Programme and the Ukraine Investment Framework (UIF)

An example from practice

The first company successfully applied for the additional ‘VRW’ grant. The ‘Agrofirma Dmytrivka’ invested in new and energy efficient CLAAS Axion 950 tractor. Using the simple Pre-Approved Equipment approach, the company was eligible for a 10% grant on the investment. Because war veterans represent more than 20% of its employees, the company received an additional VRW incentive of 15%, bringing the total incentive package to 25% on the investment.
HAVE A LOOK

The ERW and VRW incentives are currently only available at the following Partner Financial Institutions

Enterprise Renaissance Window

The Enterprise Renaissance Window (‘ERW) is available for MSMEs that suffered asset loss and/or destruction due to the war, and provides

  • 15% additional incentive for MSMEs (but not higher than the verified costs of non-recovered war damages).

ERW is available for MSMEs that:

  • have experienced relocation, asset destruction, and/or loss directly due to the war in Ukraine and provided evidence to a PFI confirming the value of war-related losses or damages (‘Verified Damage’)
  • the value of war-related losses or damages equals or exceeds 15% of the eligible investment loan that the MSME applied for under the Pre-approved (LET/GTS) project type, under SPS or Complex project types
  • has relocated substantially all of its business operations from a War Affected Territory or operates in a War Affected Territory of Ukraine. “War Affected Territories” means, at any relevant time, any territories of Ukraine that have most suffered from the Russia’s war of aggression, comprising basic administrative units of Ukraine (communities, or “terytorialna hromada”) in which military operations are (were) conducted or territories temporarily occupied by the Russian Federation, as identified by the government of Ukraine in line with Resolution #1364 dated 6 December 2022 on “Some Issues of Formation of the List of Territories in which Military Operations are (were) Conducted or Temporarily Occupied by the Russian Federation ” and listed in the Order No. 309 dated 22 December 2022 “On Approval of the List of Territories in which Military Operations are Conducted (Were Conducted) or Temporarily Occupied by the Russian Federation” or other official Ukrainian government sources listing such war affected territories that may replace the mentioned documents in the future.
  • have neither received nor is expected to receive compensation for the Verified Damage from any third party outside of the Programme

Veteran Reintegration Window

The Veteran Reintegration Window (‘VRW’) is available for MSMEs that fall into one of the following two Categories:

  • 15% additional incentive for MSMEs in VRW 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;
    • services war veterans that comprise at least 20% of its clients or revenues.
  • 10% additional incentive for MSMEs in VRW Category 2:
    • 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.
  • The following is applicable to both VRW categories:
    • VRW sub-borrowers must have implemented or must commit to implement Veteran-friendly Measures (“VFM”): policies, practices, as well as infrastructure enhancements improving access for war affected persons and people with disabilities.
    • EBRD, with support from its consultants, will assist PFIs and VRW applicants in designing the VFM and raise awareness about best veteran reintegration practices among relevant stakeholders during the Programme’s implementation.
    • MSMEs who believe they qualify should apply to their selected PFI for VRW together with their project investment application.
    • MSMEs who believe they qualify should apply to their selected PFI for ERW together with their project investment application.

How the combined incentive schemes work:

Project TypeBasic IncentiveAddional IncentiveTotal 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%

 

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