Simplified Approach

Simplified Approach for SPS and Food Safety

This  simplified approach is exclusively for investments aimed at achieving full compliance with EU SPS or Food Safety technical regulations and standards as set forth in the DCFTA/AA, with an investment value of up to EUR 300,000 and grant incentives up to 15%.

Typical investment Examples

  • Refurbishment of production and storage buildings 
  • Post harvesting storage facilities 
  • Cold storage of perishable goods 
  • Process, packaging and labelling equipment 
  • Automated process control systems 
  • Laboratories 
  • Product and/or HACCP system certification costs 

Grant Incentive

Application Procedure

The applicant fills out an Application Form , which will be checked by the Project Consultant for SME eligibility.

The Project consultant will support the applicant to prepare an alignment plan describing how the proposed investment will help them meet at least one requirement of the EU Directives and Norms, check the documentation and if necessary advise on any modifications needed. The consultant will also indicate the maximum size of the proposed investment.

If the applicant meets the standard bank lending criteria, the applicant will be asked to sign a Letter of Engagement.

As a next step the applicant should fill in a loan Application and attach an Investment Plan (IP) on the basis of a template provided by the project consultant. The project consultant simply checks the investment plan to ensure it complies with the very straightforward eligibility requirements and if necessary advises on any necessary modifications, or conditions. If all sides are now in agreement, the applicant signs the loan agreement with the Bank.

Once the project is implemented, the borrower sends a filled Compliance Verification Request (CVR) to the Project consultant who forwards it to the Verification Consultant.

The Verification Consultant checks that the project complies with the parameters specified in the Investment Plan, and if yes the incentive grant will be transferred to his account.

Eligibility Criteria

Application Forms

SPS Application Form

Project eligibility criteria:

  • This approach is used for projects that help the applicant comply with technical regulations and SPS measures as set forth in the AA/DCFTA. The purpose is to enable SMEs to export to the EU market and comply with the applicable PQS EU Directives

  • The project should not benefit from another EU grant

  • The project has to be outlined in an acceptable Investment Plan prepared by the SME, with support from the project consultant

  • The project has to include: the construction and/or refurbishment of buildings, fixtures, and equipment, including machinery, tools, instruments, process and product consultancy services and certification necessary for agriculture, agro-industry or industrial production of the customer’s product in order to fully comply with at least one of the applicable PQS EU Directives as listed in the Priority EU SPS Directives, applicable to the relevant Sub-borrower; or with a set of EU Directive (other than a Priority EU Directive) which the PC has confirmed the Sub-borrower should comply with

Company related eligibility requirements:

  • Eligible are all SMEs as per EU definition (fewer than 250 employees and a turnover of less than €50 M or less than €43 M of total Balance sheet, not more than 25% by shareholders that exceed the SME criteria), individual entrepreneurs and sole proprietors (a micro, small and medium size enterprise as such term is defined in the European Commission Recommendation of 6 May 2003 (EU recommendation 2003/361) concerning the definition of micro, small and medium-sized enterprises
    (http://ec.europa.eu/growth/smes/business-friendly-environment/sme-definition_en and
    http://ec.europa.eu/DocsRoom/documents/15582/attachments/1/translations)
  • The business must be registered in Ukraine, operating primarily in Ukraine, and operating in accordance with the laws of Ukraine
  • At least 51% privately owned and privately run
  • Applicants must meet the Partner Financing Institutions’ usual financing appraisal criteria
  • The applicant must comply with the EBRD’s full exclusion list