By KYIV. Dec 5 (Interfax-Ukraine) – The Ministry of Social Policy has relaunched the previously developed Helping Hand program, according to which unemployed citizens from low-income families can receive a loan to start or develop their own business.
“The Ministry of Social Policy is working to provide the most effective support to individuals and families who find themselves in difficult life circumstances. To this end, in 2023, the Ministry relaunched the previously developed Helping Hand program. It is aimed at helping low-income individuals start their own business,” the press service of the ministry said.
The essence of the program is that unemployed able-bodied individuals from low-income families can receive one-time interest-free repayable assistance of up to UAH 100,500 to open or develop their own business. Financial assistance is provided for the purchase of equipment and materials necessary to develop own business. Citizens can receive an interest-free loan from the state for a period of three years.
The assistance shall be returned either after a three-year period from the date of its receipt, in one amount (within 30 calendar days), or ahead of schedule, in parts in accordance with the schedule agreed upon by the employment center.
“Important: the amount of refundable financial assistance is reduced by the amount of taxes, fees and social security contribution paid,” the ministry said.
However, the assistance does not need to be returned if the entrepreneur has paid taxes, fees and social security contribution in an amount exceeding the amount of assistance provided; in the first year from the date of receipt of assistance, employed at least two people from low-income families for a period of at least two years through a public employment center.
To obtain a loan, a person shall contact the nearest employment center and submit an application for financial assistance, a business plan and a police clearance certificate to the established commission to assist and empower low-income families.
The commission includes representatives of the employment center, representatives of social protection bodies, local government bodies, territorial bodies of the State Tax Service, employers’ organizations and trade unions (by consent). Next, the commission reviews the submitted documents and after holding a meeting sends a written notification of the decision made to the person.
“If the decision is positive, the person shall create a legal entity or register as a sole proprietor within 30 calendar days from the date of receipt of the notification,” the ministry said.
The Helping Hand program was developed jointly with the World Bank in 2016-2018. It was successfully piloted in a number of regions.
