09 Aug 2023

1 min

Impact Investing

Western NIS Enterprise Fund resumes its Low-Interest Loan Program and in partnership with Oschadbank to provide a loan at 4% per annum to the social enterprise Smachni Spravy

Western NIS Enterprise Fund (WNISEF) and Oschadbank are pleased to announce the resumption of loan services to social enterprises with terms beating those in 2021. The loan rate will now be 4-8% per annum, depending on the type of collateral. The social enterprise Smachni Spravy LLC, based in the Kyiv region, received its third loan as part of a joint initiative of WNISEF and Oschadbank, which showcases fruitful cooperation and mutual interest in the development of social entrepreneurship.

Under the terms of the agreement, Smachni Spravy LLC received a loan at 4% per annum, which will allow it to significantly expand its commercial activities in the production of meat delicacies and reach a new level of sales of meat products by entering a deal with a national grocery supermarket chain. The increase in production volumes will allow the company to employ more representatives of vulnerable society groups, as at least 50% of the company’s staff consists of internally displaced persons, people with disabilities, etc.

Smachni Spravy LLC was founded by the NGO Ukrainian Donbas and two IDPs who moved to Kyiv region after the start of Russian aggression in 2014. The company actively promotes social involvement and ensures smooth onboarding of IDPs by providing free accommodation and meals to its employees, and is looking for new opportunities to compensate for lost housing.

The company invests 10% of its profits in community development and spends another 10% on impact projects. By that Smachni Spravy LLC shows its significant contribution to society and its striving to facilitate positive changes in Ukraine.

“We are convinced that the economics needs to be immediately restored where it is possible and relatively safe. Our first priority is supporting small and medium-sized enterprises that have an additional social mission, which will allow them to employ vulnerable people or solve urgent problems in the community. This is extremely important today and we are pleased that our financial partner shares our opinion,” said Vasyl Nazaruk, WNISEF Impact Investing Program Director.

“Having partnered with WNISEF and Oschadbank, the company will be able to get loans that will be used to purchase equipment, build climate chambers and replenish current assets to buy raw supplies. Given that the production of delicacies requires at least 35 days, and retail chains provide payment terms of 14 to 27 days, the amount of produce in progress can reach more than UAH 2-3 million per month. Thus, in order to avoid financial gaps, loan proceeds should be directed to these needs. By growing and expanding its activities, the company acquires additional opportunities to implement social and volunteer initiatives,” noted Yevhen Nazarkovskyi, CEO of Smachni Spravy LLC.

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