Who can apply

• • Investment project compliant with one or more relevant EU Directives in the field of  environmental protection, workers’ health and safety and product quality and safety, as listed in the Priority EU Directives
  • Or, investment compliant with a EU Directive (other than a Priority EU Directive), confirmed as suitable by the Project Consultant
  • Project not benefitting from another EU grant or any other grant or subsidy available from an international or national donor organization
  • Individual SMEs are eligible for total aggregate loans of up to EUR 3 million (for complex projects)
  • The loan amount shall not exceed 100% of the investment cost of the relevant project (VAT Excluded)
  • Eligible investment costs incurred after the date of the Agreement between the company and a Partner Bank or a Financing Institution
  • Each project successfully implemented is eligible for an Investment Incentive payment of up to 15% of the financed amount following Verification Consultant’s check 

• • SMEs as per EU definition: fewer than 250 employees; a turnover of less than €50 M or total Balance sheet less than €43 M ; no more than 50% by shareholders that exceed the SME criteria,
    (http://ec.europa.eu/growth/smes/business-friendly-environment/sme-definition_en and
    http://ec.europa.eu/DocsRoom/documents/15582/attachments/1/translations)
  • The business must be registered in Ukraine, operating primarily in Ukraine, and operating in accordance with the laws of Ukraine
  • The business should be INDEPENDENT. “Independence” is defined as follows:
    • No more than 50% of the company’s share capital is owned or controlled by another company/organization, which does not satisfy the SME eligibility criteria described above.
    • The company/business is NOT part of a group of companies/businesses, which are under common control, where all companies in the group are engaged in a similar business sector, and the aggregate results of the group of companies don’t comply with the SME eligibility criteria described above.
  • At least 51% privately owned and privately run
  • Applicants must meet the usual financing appraisal criteria of a Partner Bank or Partner Financing Institution
  • The applicant must comply with the EBRD’s Environmental and Social Policy https://www.ebrd.com/news/publications/policies/environmental-and-social-policy-esp.html

A Loan or a Lease cannot be utilized for the purpose of financing any of the following:

• A sub-borrower must not be a person or entity that is sanctioned or included on EBRD’s list of persons or entities ineligible to be awarded an EBRD-financed contract or for EBRD funding (https://www.ebrd.com/ineligible-entities.html) and/or listed on database of all legal and natural persons excluded from EU funding set up by the European Commission under EDES database (https://ec.europa.eu/info/strategy/eu-budget/how-it-works/annual-lifecycle/implementation/anti-fraud-measures/edes/database_en)
• A sub-loan shall not be made any person or entity for the purpose of financing any of the following:
  • production and/or trade of arms or military equipment
  • financial institutions or financial services companies
  • insurance business
  • production of tobacco or hard liquor
  • sale of tobacco or hard liquor (other than where the sale of tobacco or hard liquor is ancillary to the entity’s primary business activity)
  • casinos or other gambling facilities
  • speculative investments in property or currencies or any other speculative investment activities
  • investments in securities of any kind, including investments in share capital of other companies
  • technologies specifically used for activities in oil and gas production, processing (including refining), transport (transmission and distribution), storage and utilisation to generate electricity (other than for own consumption)
  • technologies specifically used for the combustion, transportation or extraction of peat, and carbon intensive fossil fuels such as coal, heating oil or oil shale
  • non-renewable fuel-powered boilers, gas infrastructure and equipment
  • any activities appearing on the EBRD Environmental and Social Exclusion List as outlined in Appendix 1 or EBRD’s Category A list of projects as outlined in Appendix 2 of the applicable EBRD Environment and Social Policy
  • production of single use plastic products for consumer applications (not for medical purposes)
  • working capital, except to the extent that such working capital requirement is an integral part of the investment cost of the eligible sub-project
  • speculation in property (being investments in real estate solely with the aim of making short or medium term profit on sales)
  • purchase of land
  • speculation in shares, bonds and any other type of financial instruments, derivatives or securities
  • refinancing (or other types of replacement/consolidation) of any existing term loan or credit operations to the sub-borrower
  • construction of roads and railways
• extraction of raw material and mining
• manufacture of article of concrete, cement and plaster
• financing of passenger cars, unless otherwise agreed with EBRD and provided that the financed cars are used exclusively for the sub-borrowers’ business activities