A further $1.5m is being distributed to micro, small and medium-sized businesses (MSMEs) in Ukraine through a credit union liquidity fund headed by the World Council of Credit Unions (Woccu) and the US Agency for International Development (Usaid).
Set up in 2021 to facilitate more agricultural lending through the country’s credit unions, the fund was expanded from its initial $1m offering following Russia’s invasion of Ukraine in 2022. It has now made available 1,682 loans totaling $4.36m to help businesses continue operations in wartime.
The fund has been delivered in coordination with the Credit for Agriculture Producers (CAP) Project between 2016 and 2024 and now the Grow project.
Launched in 2024, Grow is a four-year project to increase credit union liquidity for business financing, improve the enabling environment for credit unions, deepen the technical capacity of credit unions, and address the specific challenges of women and other vulnerable populations in accessing financing for business development.
The funds will be distributed via the Ukrainian United Credit Union (UUCU) and the United Credit Union of Unascu. The two partner credit unions will pass the funds to partner credit unions to lend to businesses and entrepreneurs including farms, MSMEs and co-ops, as well as individuals in rural areas who are seeking to start or expand existing businesses.
The loans will be available to both individuals and legal entities, thanks to an update to credit union legislation in 2023 – a change that Usaid and Woccu have campaigned for since 2016.
Ewa Sierzynska, chief of party for the USAID Grow Project, said: “The $1.5m infusion strengthens our capacity to support small businesses across Ukraine. This investment ensures that credit unions can continue to provide the financing necessary for growth and stability, even in the face of ongoing uncertainty.”
Another $1.5m is planned to be distributed later this year.
