Publication date: 18.05.2024
Lawyer
Issue a grant for a greenhouse: key changes, criteria and requirements
The government program "eRobota", launched on July 1, 2022, aims to support small and medium-sized businesses by providing non-refundable grants. Among them, greenhouse development grants have attracted considerable attention, offering significant financial support to farmers and entrepreneurs.
## Key changes in the grant application process
### Comprehensive financing
From 2023, grants for the development of greenhouses will be financed in full, not in part. Applicants must deposit at least 30% of the project cost into their account within 30 days of receiving the grant decision. This contribution can come both from personal funds and from a loan. After enrollment, these funds are immediately available for use.
### Unregulated programs
Applications sent through the platform cannot be changed. Applicants should therefore carefully prepare their documentation, taking into account factors such as inflation to ensure an accurate cost estimate.
### Flexibility in withdrawing the grant
Recipients have the right to refuse an agreed grant. For this, the Ministry of Agrarian Policy should be notified. In case of receipt of funds, the total amount must be returned to the authorized bank (Oschadbank or Ukreximbank).
## Criteria and requirements for grant applications
### Project and documentation
1. **Project documentation**: The application must be accompanied by a scanned copy of the modular greenhouse construction project with estimated documentation and the builder's signature. Applications without these documents will not be considered.
2. **Ownership of the land**: The land must be for agricultural purposes, the ownership or use of which has been established for at least seven years from the date of application.
### Financial contributions and grants
1. **Own funds**: Applicants must finance at least 30% of the total project cost. This contribution may include personal funds or loans.
2. **Amounts of grants**:
- from 0.4 to 0.6 ha - UAH 2 million
- from 0.8 to 1.2 ha: UAH 3.5 million
- 1.6-2.4 ha: UAH 7 million
### Creation of jobs and employment
1. **Job Creation**: At least four permanent and ten seasonal jobs per hectare must be created or new farm members recruited accordingly. Seasonal workers must be employed for at least eight months a year.
2. **Wage Requirements**: Employees must earn at least the minimum wage as evidenced by social security contributions.
### Project implementation and schedule
1. **Project validity**: The modular greenhouse must be built within 12 months from the moment of receipt of budget funds.
2. **Water and Irrigation**: The greenhouse must have a proper water source and irrigation system.
3. **Planting material**: In the case of using grant funds, crops must be grown from planting material entered in the State Register of plant varieties suitable for distribution in Ukraine.
### Long-term liabilities
1. **Continuity of business**: The greenhouse must be operational and tax compliant for at least three years after construction.
2. **Loan utilization**: Participants can use loan funds under the "5-7-9" program to supplement their financial contribution.
## Application process
1. **Prepare the documentation**: Gather the necessary documents, including the project proposal, cost estimate, and developer signatures.
2. **Apply through Diya**: Apply through the Diya platform.
3. **Verification**: Documents are verified by the bank and the Ministry of Agrarian Policy and Food of Ukraine.
4. **Grant Decision**: Wait for the grant decision and then sign the agreement with the authorized bank.
5. **Distribution of Funds**: Open a bank account and deposit your co-financing percentage. Use grant funds as directed, ensuring all expenditures are documented and compliant.
## Ensuring compliance and monitoring
### Post-grant monitoring
1. **Checking expenses**: after spending 50-55% of the grant funds, the bank will check the purchased materials and equipment.
2. **Additional costs**: If the costs exceed the initial estimate, in particular due to the difference in VAT, the recipient must cover the additional costs from personal funds.
3. **Supplier requirements**: Payments are made to suppliers registered in the Unified State Register at least 12 months before the grant decision.
### Consequences of non-compliance
Recipients who do not meet the terms of the grant must return the difference between the funds used and the taxes paid. Inappropriate use of funds leads to the loss of financial support within the program.
## Conclusion
Grants for the development of greenhouses of the "eRobota" program provide significant opportunities for agricultural entrepreneurs in Ukraine. By understanding and following the updated criteria and requirements, applicants can successfully obtain funding to advance greenhouse projects. Careful preparation and adherence to the outlined procedures will pave the way to a prosperous and sustainable agriculture.
