Govt extends term of preferential lending from 2 to 5 years for businesses in high military risk zones

The Cabinet of Ministers of Ukraine has decided to extend the preferential rate of 1% per annum for investment loans for businesses operating in high military risk zones, and has also extended the loan term from two to five years, the Ministry of Economy of Ukraine reported on Tuesday.

The department emphasized that such a rate will be valid for the first five years of lending, after which it will be 5% per annum.

"This is more stability for business and more opportunities to invest the saved funds in development. Currently, high war risk zones attract more than 20% of all loans under the 5-7-9% program. For many, they are becoming almost the only opportunity to maintain work. Therefore, it is very important that business continues to receive access to preferential credit funds on improved terms," First Deputy Prime Minister - Minister of Economy of Ukraine Yulia Svyrydenko commented on the decision.

The ministry explained that high war risk zones include both entire regions and individual districts or communities that are experiencing or have experienced hostilities, regular attacks, or are in close proximity to the front or are located in a zone of risk of damage. Among them are individual districts of Dnipropetrovsk, Kyiv, Mykolaiv, Odesa, Sumy, Kharkiv and Chernihiv regions, as well as almost all territories of Donetsk, Zaporizhia and Kherson regions.

The Ministry of Economy recalled that since the beginning of 2025, businesses have received 11,200 preferential loans under the program Affordable Loans 5-7-9% for a total amount of UAH 35.4 billion, of which UAH 7.5 billion is lending in a high military risk zone.

The program Affordable Loans 5-7-9% is a component of the policy of development of Ukrainian manufacturers Made in Ukraine and is aimed at stimulating micro, small and medium-sized businesses through cheaper credit resources at the expense of state compensations or state guarantees.

The program is implemented through the Entrepreneurship Development Fund and authorized banks. Today, 46 banks participate in the program.