The European Union strengthens support for small businesses in Ukraine
The European Commission has launched a call for proposals under the Pillar II of the €50 billion Ukraine Facility. This call aims to enhance access to finance for small businesses in Ukraine, with a strong emphasis on supporting those affected by the war and vulnerable companies.
This follows the third meeting of the Steering Board of the Ukraine Investment Framework on 7th of March 2025, where the European Union Member States endorsed the new Call for Proposals for Intermediated Lending Operations for Micro-, Small and Medium-Sized Enterprises via Banks.
By supporting small businesses and start-ups, this Call directly aligns with the Ukraine Facility Regulation’s commitment to dedicating at least 15% of the Ukraine Guarantee to this target group. To achieve this, the European Commission partners with International Financial Institutions (IFIs) and banks in Ukraine as intermediaries, ensuring that smaller businesses—especially those facing challenges in accessing finance—can benefit from the support.
This Call encourages partners to take on more risk and provide grants to businesses in war-affected areas, as well as to war veterans, displaced persons, and refugees returning to Ukraine after fleeing the full-scale Russian invasion in 2022. It also prioritises support for micro-enterprises, start-ups, and businesses led by women, youth, and people with disabilities, along with small-scale farmers. Additionally, the Call facilitates access to finance for the demining industry and empowering farmers and agribusinesses to participate in demining efforts.
The present Call has a total indicative amount of EUR 1.6 billion in budgetary guarantees and blended finance grants. The deadline for applications is 22 April.
The call is open to eligible implementing partners under the Ukraine Facility Regulation, pillar assessed entities such as the international and European multilateral financial institutions, including the European Investment Bank Group, European Bank for Reconstruction and Development, International Finance Corporation, Council of Europe Development Bank, and bilateral financial institutions such as development banks and export credit agencies. Entities interested in participating to this Call can contact the pillar assessed implementing partners as well as the relevant ministries and agencies in their country.
For questions related to the call for proposals, eligible implementing partners are invited to contact: ENEST-EU-UKRAINE-INVESTMENT-FRAMEWORK@ec.europa.eu
Background
The EU’s Ukraine Investment Framework is an integral pillar of the €50 billion Ukraine Facility designed to attract public and private investments for the recovery and reconstruction of Ukraine and support its path towards EU accession. It is equipped with financial instruments totalling €9.3 billion, with €7.8 billion in loan guarantees and €1.51 billion in blended finance. The objective of the Ukraine Investment Framework is to mobilise €40 billion of investments for the reconstruction, modernisation and long-term growth of Ukraine, supporting the objectives and the implementation of the Ukraine Plan consistently with EU policy priorities.
The Ukraine Investment Framework is building on the experience of European Fund for Sustainable Development Plus (EFSD+) and the Neighbourhood Investment Platform and is implemented in indirect management by pillar-assessed entities, i.e. European Financial Institutions and multilateral Financial Institutions.
In June 2024 at the Ukraine Recovery Conference in Berlin, European Commission President Ursula von der Leyen announced the signature of the first investment programmes under the UIF. The EU concluded €1.4 billion in new guarantee and grant agreements to support Ukraine’s recovery and reconstruction.