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EU launches new call for proposals worth €1.6 billion to support small businesses affected by the war in Ukraine

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The European Union has announced a new call for proposals to support small businesses, war-affected communities, and recovery investments in Ukraine. Under the Ukraine Facility, the Ukraine Investment Framework Steering Board has approved a new initiative aimed at expanding access to financial support for micro, small, and medium-sized enterprises through banks. This call for proposals is designed to help vulnerable groups, such as those impacted by the war, as well as to assist efforts in mine clearance. It aligns with the EU's goal to strengthen Ukraine's socio-economic cohesion. The total amount dedicated to this initiative is €1.6 billion in budget guarantees and blended finance grants.

Enlargement Commissioner Marta Kos (pictured) said: “Supporting small businesses in Ukraine is not just about economic recovery – it's about preserving the very fabric of communities. They are the backbone of local resilience, and ensuring their success is crucial for a strong and united society. With this new call, we are empowering them to rebuild and thrive with €1.6 billion to support those most affected by the war.”

The initiative encourages financial institutions to help businesses in war-affected regions, especially those employing veterans, integrating displaced persons and returnees, and supporting small farmers. It also promotes access to finance for: micro-enterprises and start-ups; women-led, youth-led, and disability-inclusive businesses; the demining sector and agribusinesses engaged in mine action. The call also supports the Ukraine Facility's commitment to allocate at least 15% of the Ukraine Guarantee to small businesses.

The Ukraine Investment Framework is part of the EU's €50 billion Ukraine Facility, which is designed to attract both public and private investments to support Ukraine's recovery and reconstruction. With financial instruments totalling €9.3bn—including €7.8bn in loan guarantees and €1.5bn in blended finance—the framework aims to mobilize €40bn in investments for Ukraine's recovery and modernization. In September 2024, the European Commission launched its first call for proposals under this framework to drive investment into Ukraine's rebuilding efforts.

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