The EU launches a €1.6B call for proposals to support small businesses in Ukraine.

The EU has initiated a new call for proposals aimed at assisting small businesses in war-affected communities and attracting investment for Ukraine’s reconstruction. An initiative through the Ukraine Fund has been approved to enhance access to bank-provided financial support for micro, small, and medium-sized enterprises. This initiative specifically seeks to aid the most vulnerable groups that have been impacted by the war and to facilitate demining efforts.

The initiative’s total allocation is €1.6B in budget guarantees and blended finance grants. The EU initiative encourages financial institutions to help small businesses in regions affected by the war.

The Ukrainian Investment Framework, which is part of the €50B Ukraine Fund, is designed to draw both private and public investment for Ukraine’s reconstruction efforts. This financial instrument has secured €9.3B in financing, which includes €7.8B in loans and €1.5B in blended finance. The program aims to mobilize up to €40B for investment in Ukraine’s reconstruction and modernization.