10 Q’s and A’s about ‘Made for Victory’ – a grant program for Ukrainian defence component manufacturers​

​On April 8, the Ukrainian government announced the launch of the “Made for Victory” grant program, allocating ₴1 billion to support domestic manufacturers of defence components. A week later, Deputy Minister of Economy Andriy Telyupa presented the program to producers, addressing their questions. ​Defender highlights the key takeaways.

Telyupa estimated that the allocated funds would suffice to finance approximately 150 companies producing components for the defence industry. He also noted that the Ukrainian Ministry of Economy might increase the grant fund in the future.

Who is this grant for, and who provides it?

“Made for Victory” is a new state support programme for manufacturers operating under NACE codes in Section C. Under the terms of the programme, enterprises involved in the production of components for weapons, military equipment, and UAVs can receive up to ₴8 million to purchase equipment on co-financing terms — 50% covered by the state and 50% by the manufacturer. For enterprises located in front-line regions, the grant can cover up to 80% of costs.

Future entrepreneurs, existing sole proprietors, or legal entities operating under NACE codes in Section C can apply for grant funding. All entrepreneurs, except those operating in temporarily occupied territories, are eligible.

“Perhaps ₴8 million is not enough to modernise large enterprises — we understand this — but for now, this is the maximum amount we can allocate to one company. However, participants in this programme can combine it with the ‘Affordable Loans 5-7-9%’ scheme and thus fully cover the cost of new equipment,” says Telyupa.

How to apply?

Grant applications are submitted via the “Diia” platform and are ongoing, meaning there is no final deadline. However, applications will be reviewed in “waves” every two weeks, and payments will be transferred to the company’s account within 1–1.5 months after the end of each wave.

If an application is rejected, it can be revised and resubmitted.

The programme is currently disbursed by Oschadbank and Ukreximbank, with Sense Bank expected to join.

What are the requirements for recipients?

When applying, companies must submit a business plan outlining the intended use of grant funds. This is the main criterion for approval or rejection. The business plan must include the creation of at least five jobs (within a year of receiving the grant) and a three-year operational plan — the minimum period of activity after receiving the funds.

A business plan template is available in the “Diia” system during the application process.

Why might an application be rejected?

The most common reason is an incomplete set of documents. In such cases, the bank must provide feedback and recommendations, and the application can be resubmitted an unlimited number of times.

Another reason may be that the founding legal entity controls five or more companies. In that case, the bank may determine that the applicant has sufficient internal resources and is not eligible for state support.

Can I apply if my company needs raw materials or consumables?

The grant is intended for the purchase, delivery, installation, and launch of production equipment, including software implementation.

Applications proposing to use grant funds primarily for raw materials or consumables are likely to be rejected, as the programme’s main goal is to create production capacity. The core of the business plan should focus on production tools.

However, if the business plan justifies how raw materials or consumables will enable production expansion, such expenses may be accepted — although it is preferable that they are not the only planned use of funds.

The company was registered less than a year ago. Can we apply?

Yes. The bank does not separately assess the company’s operational history. The key requirements are the appropriate NACE codes and a solid business plan.

The owner of our company is a non-resident. Can we apply?

Unfortunately, the system currently does not accept applications from non-residents, even if the ultimate beneficiary is Ukrainian and the company has suitable NACE codes. This requirement may be reviewed in the future.

Are there any additional costs for applying or processing a grant?

Document processing, application submission, and grant consultations must be free of charge. Banks are not permitted to charge extra fees. If they do, report this to the Ministry of Economy.

Who monitors compliance and what happens if requirements are violated?

The company enters into an agreement with the disbursing bank, which outlines the terms and monitoring criteria. During the grant’s implementation, it is essential to maintain communication with the bank and report any significant changes. If the bank suspects fraud or discovers that conditions are not being met, the company will be required to return the funds.

Will the funds have to be returned if production is destroyed?

There is no clear answer to this question yet; the first step is to discuss the situation with the grant-awarding bank, and additionally, to insure the enterprise. According to Andriy Telyupa, if the enterprise and its production facilities are destroyed by the enemy, the company should not be required to reimburse the grant funds. However, this will require appropriate amendments to the programme.