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What is an investment incentive?

An investment incentive is a grant payment your business receives after purchasing and installing eligible equipment or technology using a loan or leasing provided through the programme. In practice, the programme reimburses a portion of your investment, with the specific incentive levels outlined in detail below.

Let’s look at this illustrative example

If you invest €100,000 in new equipment through the programme:

You take
a loan

You take a loan (e.g., €100,000) and invest into a project that qualifies under the programme. You complete the investment and it is verified.

You complete the investment

You complete the investment and it is verified.

You can receive cash grant

Then you can receive €10,000 – €30,000 back as a grant transferred to your account, with the exact amount depending on the nature of your project and your company.

Important

Only after your project is successfully implemented and verified will your business receive the incentive as a grant.

How are investment incentive levels determined?

The investment incentive is calculated as a percentage of the loan or lease amount used to finance your project. It is composed of a basic incentives (typically 10–15 percent) and may include additional incentives (also 10–15 percent). However, the total Investment Incentive is capped at 30% of the eligible calculation base and a cumulative amount of up to €300,000, including additional incentives.

Let’s look at this illustrative example

Your eligible incentive share is calculated based on the smaller of these two amounts:

  • the loan or lease amount used, or
  • the eligible project costs (without VAT).
Eligible project cost (excl. VAT):
€20,000
Loan/lease amount used:
€18,000
Since €18,000 is lower, the incentive is based on this amount.
The exact incentive level depends on what you are investing in — including the type of project, the technologies you install, and the programme approach (simplified or complex) that applies to your investment.

What is the source of the funding and why does it exist?

The grant payments are funded by the European Union and Sweden.
The purpose of this support is to help MSMEs in Ukraine:
Modernise
Upgrade equipment
Improve quality and safety
Adopt green technologies