Loans for small businesses: what types are available and how to obtain them

In an unstable economy, entrepreneurs continue to seek sources of financing for the development of their projects. Ukrainian banks offer a wide range of loan programmes, and the state supports small businesses with preferential terms. Find out what types of loans are available and how to apply for them correctly to get the most benefit

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Despite the military realities, Ukraine's banking sector remains stable in 2025 and is ready to support entrepreneurs. For its part, the state is developing preferential lending programmes for micro, small and medium-sized businesses. Therefore, today entrepreneurs have real tools to attract funds for the development and support of their activities. With reference to Finance.ua, we explain how to obtain a loan for a small business.

Main types of loans for small businesses

Investment loan

This is a long-term banking product with a term of 7–10 years. The funds can be used for the construction or renovation of premises, the purchase of equipment and transport, the introduction of new technologies, and the expansion of production. To obtain such a loan, a business must provide a business plan and justify the feasibility of the investment. Most often, banks require collateral — property or a deposit.

Overdraft

A short-term instrument (up to 12 months) that allows you to quickly cover cash gaps. An overdraft is a credit limit on a business account that can be used to pay for urgent expenses: salaries, taxes, and supplier services.

Credit line

Financing within a set limit that can be used in instalments over 1–3 years. Suitable for regular expenses and projects where flexible cash management is important.

State programme ‘Affordable Loans 5-7-9’

One of the most popular business support tools. Entrepreneurs can obtain financing at reduced rates, part of which is compensated by the state. The programme covers various objectives: business development, production expansion, and working capital replenishment.

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How to choose the right loan

When choosing a loan, it is important to consider several factors:

1. Purpose of the loan. An overdraft or credit line is suitable for cash gaps. For the purchase of equipment or real estate, an investment loan or ‘5-7-9’ is suitable.

2. Amount. An overdraft is often limited to UAH 2-3 million, while the ‘5-7-9’ programme allows you to borrow tens of millions, depending on the bank's terms and conditions.

3. Term. Urgent tasks are solved with short-term products, while development and investments are solved with long-term products.

4. Interest rate and fees. It is important to consider not only the nominal rate, but also additional fees for issuing or servicing the loan.

5. Collateral. The more reliable the collateral, the lower the rate and the higher the chances of approval.

In addition, the bank's reputation is important: reliable lenders offer transparent terms and a higher level of trust.

How to get a business loan

▪️ Study the banks' offers. Compare products, consult with an expert or bank manager.

▪️ Prepare documents. Usually, sole proprietors need a passport, TIN, extract from the Unified State Register, tax returns, and property documents. For an investment loan, you will need a business plan.

▪️ Submit an application. This can be done online or at a bank branch.

▪️ Wait for a decision. The result is influenced by credit history, the financial condition of the business, and the availability of collateral.

Are you starting a new business or developing an existing one? Our lawyers will help you avoid mistakes and protect your interests at every stage.

Reminder! Since the end of August 2025, it has become easier for LLCs in Ukraine to raise additional capital without increasing their authorised capital or changing the shares of participants. This simplifies financing, allows for effective asset management, and opens up new opportunities for foreign investors. Find out how to apply the new rules for business development and investment.

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