The Ministry of Economy announced the launch of a pilot project aimed at expanding agricultural producers' access to financing. This is a model under which non-bank financial institutions — credit unions and financial companies — will be able to provide loans to farmers with a land bank of up to 500 hectares. This approach should intensify support for small and medium-sized agribusiness, which often faces difficulties in raising funds in the banking sector.

According to the Ministry, the new mechanism involves the use of portfolio guarantees from the Partial Loan Guarantee Fund in Agriculture. The Fund will cover up to 50% of debt on loans provided by non-bank institutions. The total amount of guarantees within the pilot project will be 80 million hryvnias, which will significantly reduce risks for financial market participants and increase farmers' access to loan capital.

The launch of the model through non-bank institutions is explained by the fact that credit unions and financial companies have a wider geographical presence and work directly in the communities where small farms are located. This opens up the opportunity for farmers to obtain the necessary financing faster, easier and without significant bureaucratic barriers.

To participate in the project, financial institutions must meet certain criteria. First of all, they must have a valid license to carry out lending activities. It is also necessary to submit a written application and a full package of documents specified in the relevant Regulations. Only after passing the selection process will institutions be able to join the program and issue loans with partial guarantees.

Applications can be submitted until the total guarantee limit is exhausted, but the final deadline for participation is no later than January 30, 2026. This gives enough time for both financial companies and credit unions that seek to expand their client portfolio among farmers.

The pilot project is part of the state's broader strategy to support the agricultural sector and increase the financial sustainability of small producers. The introduction of new lending instruments will strengthen the ability of farms to invest in development, upgrade equipment, increase productivity, and maintain competitiveness even in a difficult economic environment.