This Procedure defines the conditions, criteria, and mechanism for providing non-refundable state assistance to individuals and business entities in the form of microgrants for the creation or development of their own business.
The Procedure states that a business entity is considered a micro- or small-scale business entity (an individual entrepreneur or a legal entity) within the meaning of the Commercial Code of Ukraine, except for business entities in the state and municipal sectors of the economy.
Microgrants are provided to cover the following areas of expenditure:
- purchase of furniture, equipment (except vehicles);
- purchase of licensed software, domestic animals and poultry, perennial plantings, seedlings, seeds, raw materials, materials, goods and services related to the implementation of the business plan (such costs should total no more than 50 percent of the microgrant);
- marketing and advertising services (such costs should not exceed 10 percent of the microgrant amount);
- rent for non-residential premises (such expenses should not exceed 25 percent of the microgrant amount);
- equipment rental (such costs should not exceed 10 percent of the microgrant amount);
- leasing of equipment, except for cars, motorcycles and other vehicles for personal use (such costs should not exceed 50 percent of the total microgrant amount);
- use of the rights of other business entities in entrepreneurial activities (commercial concession).
The size of the microgrant provided to one recipient is determined according to his request, but is not less than 50,000 hryvnias and does not exceed:
- 150,000 hryvnias in the case of the recipient's obligation to create 1 job after receiving a microgrant and hiring an employee;
- 250,000 hryvnias in the case of the recipient's obligation to create at least 2 jobs after receiving the microgrant and hiring employees.
Over the course of three years, funds are returned through the payment of taxes and fees, primarily for employed workers (EUV for employees and sole proprietors and Single Contribution).
It only takes 5 steps to successfully start or develop your own business:
1 – Create a business plan
2 – Submit an application through the DIYA portal with an attached business plan
3 – Protect the business plan (The Employment Service invites the applicant for a microgrant to an online interview. The invitation comes to the person's email address via the DIYA portal)
4 – The person receives a decision on granting or refusing a microgrant. If a positive decision is made, the recipient must open an account with Oschadbank
5 – Get funds and start a business
The mandatory condition is:
- job creation (within six months from the date of receipt of funds);
- use of grant funds within six months from the date of receipt;
- refund of the grant in the form of paid taxes and fees.
IMPORTANTLY:
- the applicant's age is from 18 to 65 years;
- a negative business reputation is grounds for refusing to consider a business plan;
- The main reason for rejections: opaque or questionable expected results of the business plan implementation;
- the recipient must conclude a contract and open an account within 15 working days from the date of receiving a positive decision;
- It is necessary to ensure employment in new jobs for a period of at least 24 months.