In the event of a second wave of coronavirus and, consequently, the re-introduction of stringent quarantine measures by the state, most small businesses will have to close or reduce their business, as well as seek help from the state. In this context, is extremely important to provide simplified access to affordable credit for entrepreneurs.<\/span><\/p>\n In early February 2020, a state credit program “Affordable Loans 5-7-9%” was launched at the initiative of the President of Ukraine and the Prime Minister of Ukraine to stimulate the development of small and micro businesses by facilitating their access to credit. More than six months have passed since the launch of Affordable Loans, so we decided to ask the Unlimit Ukraine community for their opinion on the state loan program in question.<\/span><\/p>\n Almost every fourth entrepreneur, namely\u00a0<\/span>27%<\/span><\/strong>, was denied participation in the program. Besides, only\u00a0<\/span>11%<\/span><\/strong>\u00a0of respondents managed to get a loan, and\u00a0<\/span>10%<\/span><\/strong>\u00a0are still waiting for a decision on their application. Another\u00a0<\/span>25%<\/span><\/strong>\u00a0only plan to apply for the program,\u00a0<\/span>16%<\/span><\/strong>\u00a0– do not plan due to their non-compliance with the criteria, and\u00a0<\/span>11%<\/span><\/strong>\u00a0– due to lack of interest.<\/span><\/p>\n At the same time, 89% of entrepreneurs turned to the state bank for this program and only 11% – to commercial ones. When it comes to the amount, small loans predominate. Thus, 50% of entrepreneurs managed to get a loan of up to UAH 500,000, 20% – from UAH 500,000 to UAH 1 million, 17% – from UAH 1 million to UAH 3 million and another 13% received a loan of over UAH 3 million.<\/span><\/p>\n Top 3 goals<\/span><\/strong>\u00a0for which entrepreneurs plan to spend loans received under the program “Affordable loans 5-7-9%”:<\/span><\/p>\n During the program participation period, 59% of companies reported that they did not change the number of staff, and only 18% of businesses managed to create two or more jobs.<\/span><\/p>\n Entrepreneurs who failed to participate in the program report the following most common reasons. First, the complicated bureaucratic procedure for obtaining this state assistance, secondly, insufficient creditworthiness to receive assistance, and thirdly, non-compliance with certain criteria for receiving assistance.<\/span><\/p>\n\t <\/p>\n\n
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\n\n\t\t\t\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\tSmall business suffers too much from the consequences of the pandemic, and therefore needs increased assistance from the state. We hope that feedback from entrepreneurs will help improve the conditions and opportunities of the program and thus give access to credit to even more small businesses. In addition, it is important that government support is not limited to simplifying access to finance but provides comprehensive measures for the growth and scaling of small businesses<\/span>.\n\t\t\t<\/blockquote>\n\t\t\t\t\n\t<\/div>\n\n