Basic information about the grant

We will be talking about a really attractive grant program for processing enterprises in Ukraine, which, of course, also includes furniture factories. This is the first purely state grant aid initiated and implemented by the Ministry of Economy, therefore it is a very affordable and reliable tool for financial support of Ukrainian businesses. The attractiveness of this financing program also lies in the fact that for the first thousand companies whose grant applications will be approved, the financial ratio will be 30 to 70, that is, the share of the grantee’s funds in this grant project will be only thirty percent. But there is a time limit for submitting an application – until July 1, 2023. For the following ratios, it will already be 50 to 50. Therefore, it is more attractive for an applicant to receive this grant to be in the first thousand, that is, to submit his application as soon as possible. It is also important to note that this grant is issued to processing companies exclusively for the purchase of the equipment they need. The maximum amount of assistance is eight million hryvnias.

This is already the second stage of such state grant funding. The first lasted from June to the end of last year. The current one started in February and will continue until the end of June this year. The significant difference of the second stage is that the companies that will be in the first thousand of those whose applications will be approved, and not just submitted, as was the case in last year’s first stage, will be in a more favourable position.

There are two main conditions for receiving this grant. According to the first, the applicant undertakes to provide work to 25 newly hired employees in the event of receiving a grant of 6.4 to 8 million hryvnias. If the amount of financial assistance received is less, the grantee is required to have fewer jobs. The second condition is tax. The recipient undertakes to pay all types of taxes at least equal to the amount of state financial assistance received within three years. If we are not talking about start-ups who need the grant to start a business, but to develop already existing enterprises, then if they count how many taxes they have paid during the last three years, it may turn out that they have already fulfilled the second condition a priori. If the amount is less, then only part of the required tax payments will be subject to the second condition.

How to get state grant funding?

We learned about all this from Vadym Shiyan, the owner of the company “UBSFinanceGroup”, which specializes in finding profitable loan financing for businesses and helping them get it. In particular, “UBSFinanceGroup” offers furniture companies effective assistance in obtaining financial assistance specifically under the state grant program in question.

– So, let’s go on to tell you in detail about all the stages of receiving this grant, starting with the preparation of an application for participation in this state funding program, and about your help in this process.

– For those who may be sceptical or prejudiced about the possibility and reality of receiving grant funding, I will tell you about the results of last year’s stage of the grant program for processing companies.

Almost everyone whose applications were approved received the amounts they needed within the financial parameters of this grant just in time for the New Year. However, with some (a month or two) delays, which is not surprising in wartime conditions. What is important is to say in more detail, because it is possible that certain delays cannot be avoided this time as well. Companies applying for a grant, after being notified of the approval of their application, must (as is the existing practice for providing grant funds) open a special bank account within ten days. Put guarantee funds on it – credit your own contribution in the amount provided for in the contract with the equipment supplier and the grant agreement, and wait for the state to transfer the specified financial aid to the grantee. After that, you can pay with the supplier. This is important to know in order to accumulate the necessary amount of funds for a special bank account and to warn the supplier about a possible delay.

And now about the actual process of receiving this grant.

Before the company submits an application, at the pre-start stage, it is necessary to make sure whether it meets the criteria stipulated by the grant program, therefore, whether it has a real chance of receiving grant funds. She can perform such a consulting analysis either herself, or turn to such providers of consulting services as our company, or specifically to us because we have already provided applicants for financial assistance – under this program – all the necessary services. And all our “wards”, whose applications were approved in last year’s first wave of state financial support for processing companies, received grant funds. We have such help free of charge. Our help at all subsequent stages of the process will be paid if the company wants to continue to use our help to increase its chances of receiving a grant.

– Let’s assume that as a result of the pre-start consulting, confirmation of the chance to receive a grant was received. How to proceed?

– Next, an application for receiving this grant and a business plan for the purchase of the necessary equipment are being prepared. An application with an attached business plan is sent through the Diia portal. If the application is received and approved, the company receives a list of documents that must be provided to the bank.

Decision-making (approval or disapproval of the submitted application (request) is carried out in three stages: 1) checking the reputation of the applicant company for the grant, 2) if everything is in order, Oschadbank analyzes the “viability” of its business plan, 3) if the second stage is passed, the bank calculates points (minimum 25, maximum 50 under this program) based on the financial documents and business plan provided to it by the company.

By the way, when conducting a free pre-start study based on the company’s bank statements, the essence of the agreement with the supplier, and the desired amount of grant aid, we can roughly determine the number of points the company can count on, so whether it has a chance to receive this grant. And we do it without fail.

An important point is a quality, and persuasiveness of the grantor of the business plan of the applicant company. Our task is also to help the client write a business plan of the highest quality – complete and convincing with arguments. Along the way, we structure the request so that it is attractive for investment. We already do this on a paid basis after concluding a contract with the client and paying for our services.

When the business plan is formed, the application is made, and everything is sent for approval through “Diia” If such approval is received, a few days later the bank receives a list of documents that must be submitted to it within two days. We warn the client in advance about what documents the bank will require so that he has time to prepare and submit them on time.

By the way, again referring to the results of our work with clients who applied for a grant at the first stage of this state program for financing processing enterprises, I will say that 95 percent of the applications prepared with our help were subsequently approved and satisfied.

Next, our consultants prepare representatives of the company counting on the grant for a possible interview with bank employees. The preparation consists in developing a dialogue scene with the bank, so that company representatives can clearly and reasonedly answer the questions that the bank may ask them – what and how to talk, and what not to talk about, what to focus on.

Well, after that, as already mentioned, we have to wait for a decision on the readiness of the state to satisfy the grant application

or reject it. In the case of a positive decision – within ten days, open a special bank account and place a certain guarantee amount on it – the amount of your own contribution.

– How many furniture companies did UBSFinanceGroup help to get this state grant last year?

– Among the many who were helped, there was only one piece of furniture – the company “Garant” from Zhytomyr Oblast, which received a grant in the amount of 7.5 million hryvnias. That is why I want to encourage furniture makers with this publication so that this time their fate in this grant program is quantitatively greater. The example with Polish pike showed that the grantor has a rather benevolent attitude towards furniture companies, which prompted me to pay more attention to furniture makers in the second stage of the program. After successfully obtaining a grant from the named furniture company with our assistance, its managers recommended us to their colleagues, with whom we are currently negotiating. And the furniture company from the Cherkasy region, whose application with a package of necessary documents has already been submitted to the bank, is waiting for a favourable decision.

– Is “UBS Finance Group” engaged in finding financing for clients mainly within the framework of grant programs?

– No, they are just a sideline of our activity, and in general, the company specializes in investment banking, attracting funds from domestic sources for clients – mainly from the category of medium-sized businesses. In particular, credit. We know where to raise funds, and how to do it correctly and profitably, and we help clients to do so.

And attention was paid to this grant opportunity because it is the first state – therefore reliable – program for financing the real economy. And from the very first stage, it demonstrated its simplicity, efficiency and effectiveness as an investment tool.

*  *  *

For consultations, you can contact us by phone at 067 216 -23 – 07 (Viber, WhatsApp, Telegram), or by email – deal@ubisfinance.com.ua.