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:
These incentives are in addition to the basic 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.
MSMEs who qualify should submit their ERW or VRW incentive application to one of the Participating Financial Institutions together with their project investment application.
Click here to learn more about EU and EBRD’s Financial Inclusion Recovery Programme and the Ukraine Investment Framework (UIF)
The ERW and VRW incentives are currently only available at the following Partner Financial Institutions:
The Enterprise Renaissance Window (‘ERW’) is available for MSMEs that suffered asset loss and/or destruction due to the war, and provides
ERW is available for MSMEs that:
The Veteran Reintegration Window (‘VRW’) is available for MSMEs that fall into one of the following two Categories:
| Project Type | Basic Incentive | Addional 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% |
The Enterprise Renaissance Window (“ERW”) is available for MSMEs that:
MSMEs who believe they qualify should apply to their selected PFI for ERW together with their project investment application.
A Sub-Borrower qualifies for “VRW Category 1”, it is either:
A Sub-Borrower qualifies for “VRW Category 2”, it is either:
and (for all 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.
