Terms and Requirements of the 5-7-9% State Lending and Leasing Programmes in 2026

Planning business development in Ukraine in 2026 is no easy task. Constant challenges are forcing entrepreneurs to seek additional capital to scale their businesses, modernise operations or maintain liquidity.

Among the many financial instruments available, the “Affordable Loans 5-7-9%” and “Affordable Financial Leasing 5-7-9%” state programmes have a special place. For several years, they have remained one of the key instruments supporting small and medium-sized businesses. But are they really suitable for every business need, particularly when it comes to upgrading fixed assets? Let’s take a closer look.

The principle behind this initiative is relatively simple. The government compensates financial institutions for part of the interest rate so that the end borrower can obtain a loan or leasing at preferential rates of 5%, 7% or 9% per annum. When a business takes out such financing, you pay only the fixed preferential rate, while the difference between it and the bank’s market cost of funding is covered by the National Development Institution (NDI).

Affordable loans and leasing under the 5-7-9% state programme remain among the most popular business financing instruments because they can significantly reduce the financial burden on a company: the business pays only the preferential rate, while the government covers the difference.

However, it is important to understand that government support for businesses is not charity. The bank still assesses your ability to repay according to strict market standards because it is taking the financial risk. Government compensation covers only part of the interest burden, not the principal amount of the loan itself.

In 2026, particular advantages are available to businesses operating in energy efficiency and energy independence — for example, companies installing solar power stations or cogeneration units — as well as businesses in agriculture, the defence industry and manufacturing.

Micro, small and medium-sized businesses that meet the following basic requirements may qualify for financing:

• legal entities and individual entrepreneurs registered in Ukrainian-controlled territory and meeting the programme requirements;
• companies whose financial condition meets the requirements of the partner bank;
• businesses that meet the programme requirements regarding the absence of bankruptcy or liquidation proceedings, as well as the bank’s regulatory requirements;
• no outstanding debts to the state budget, tax arrears or similar liabilities.

When assessing state lending programmes, it is important to understand the rules clearly. Several critical parameters determine whether this type of financing is suitable for your company, including:

1. Own contribution. The required contribution depends on the financing purpose, the bank’s terms and the characteristics of the project. In many cases, it can be as low as 0%, although individual banks may require the borrower to contribute their own funds.
2. Collateral requirements. A preferential interest rate does not eliminate the need to secure the loan. Collateral may include the equipment or machinery you purchase, commercial real estate, vehicles or other assets. In some cases, part of the required security may be covered by state portfolio guarantees.
3. Financing terms. The financing period depends on the programme category and its current terms, for example, whether the funds are intended for investment purposes or working capital.
4. Limits. The maximum financing amount is regulated according to the purpose of financing and the company’s industry. In 2026, the limits are regularly adjusted to support strategically important industrial and energy sectors. For most programme categories, the maximum financing amount is currently up to UAH 150 million, although different limits or special conditions may apply to certain categories. Loans for business recovery are also subject to a limit of up to UAH 150 million, which is not included in the programme’s general limit. Certain specialised programme categories may have different maximum financing amounts.

I often see situations where entrepreneurs try to use borrowed funds to cover every gap in their budget. However, this programme is strictly purpose-specific. You can obtain financing for:

• Purchasing fixed assets: production equipment, machinery, specialised vehicles, solar panels and energy systems.
• Modernising, reconstructing or repairing premises directly used for business activities, except offices and properties intended for rental.
• Purchasing commercial vehicles and, in some cases, passenger vehicles where permitted by the programme — for example, when the vehicle is directly essential to the operations of a particular type of business.
• Working capital, subject to strict restrictions on its use, such as purchasing raw materials or fuel for a production cycle.

If your goal is to upgrade your business fleet by purchasing several passenger cars for sales representatives or managers, financing passenger vehicles under the 5-7-9% programme will generally not be available.

The process of obtaining preferential financing consists of several logical steps. To minimise the risk of rejection, it is worth proceeding systematically:

1. Prepare financial statements. You need to demonstrate official income, a balance sheet and financial statements for the most recent reporting periods.
2. Develop a business plan. If you are planning significant investment, such as launching a new production line, obtaining approval without a clear payback calculation and cash-flow forecast may be difficult.
3. Choose a bank and submit an application. Choose a bank that understands your industry, actively works with government programmes and has straightforward, transparent document-review procedures. Unex Bank, for example, also offers financing to entrepreneurs through leasing or loans under this programme.
4. Complete the compliance process. The bank will thoroughly assess your business reputation, potential sanctions risks and actual financial condition.

Once financing has been approved, the required agreements are signed, after which the funds are generally transferred directly to the supplier of the equipment or machinery.

What should you do if your business urgently needs transport — for example, for delivering goods? In practice, trying to fit a business vehicle purchase into the strict requirements of the 5-7-9% programme is not always the most rational approach.

First, it can take more time due to approval and administrative procedures. Second, you may use up credit limits that could otherwise be allocated to larger-scale production or investment projects.

Leasing commercial vehicles or specialised equipment can therefore be an excellent and often significantly faster alternative. It allows you to obtain the necessary vehicles or equipment without taking a substantial amount of working capital out of the business.

Let’s look at how financial leasing works for legal entities. Essentially, it is a long-term rental arrangement with ownership transferred to the lessee at the end of the term. The leasing company purchases the vehicle you need, registers it, arranges insurance and provides it for your use. You make monthly lease payments and, at the end of the term, ownership of the leased asset is transferred to you.

When you lease a vehicle, you gain several significant advantages compared with a traditional loan:

• Faster processing. Financing decisions are often made faster than traditional bank loan decisions, while the borrower assessment process may be simpler.
• Lower upfront costs. You generally only need to make a down payment on the vehicle, usually between 10% and 30%. Other expenses — registration with the Ministry of Internal Affairs service centre, the pension fund contribution for passenger vehicles, comprehensive insurance and third-party liability insurance — are generally handled by the leasing company and may be spread across the monthly payments.
• Service support. The lessor handles insurance claims, communication with Ministry of Internal Affairs service centres and obtaining the required documents from Territorial Recruitment and Social Support Centres for registration. This can save significant time and reduce the administrative burden on the lessee.
• Tax benefits. Leasing may offer tax advantages depending on the company’s taxation system.

To make it easier to choose the right financing instrument for your business needs, here is a comparison table.

There is no single answer that will work for every business. The right choice depends on the specific goal and priorities of your business at a particular point in time.

I recommend following a simple rule:

1. Choose the “Affordable Financial Leasing 5-7-9%” or “Affordable Loans 5-7-9%” state programme if your goal is long-term investment in fixed assets — commercial/freight vehicles, specialised equipment, machinery, real estate, capital construction or production energy modernisation. This is one of the most affordable sources of financing on the market and is worth preserving for major investment projects.
2. Choose standard market-rate leasing if you need a passenger vehicle for day-to-day business operations right now. It is fast, requires less paperwork, does not tie up significant working capital and allows you to leave registration and insurance administration to the leasing company.

The ability to combine different financing instruments — loans and leasing — is a sign of strong financial management and financial literacy.