Ukrainian MSMEs Gain Access to Enhanced Credit Union Financing to Fuel Business Growth
New $1.5 million distributed through USAID/WOCCU Liquidity Fund
The United States Agency for International Development (USAID) and World Council of Credit Unions’ (WOCCU) GROW Project in Ukraine (2024-28) on December 26 made $1.5 million available to Ukrainian credit unions to boost lending to micro-, small- and medium-sized businesses (MSMEs) as they continue to navigate the ongoing challenges of wartime conditions.
It is the latest tranche of funding provided by the USAID/WOCCU Liquidity Fund, which was originally established in 2021 in coordination with USAID, Worldwide Foundation for Credit Unions and the Credit for Agriculture Producers (CAP) Project(2016-24) to help partner credit unions expand agricultural lending. Since Russia’s full-scale invasion of Ukraine began in 2022, the Liquidity Fund has expanded its purpose to address urgent needs, allowing credit unions to issue a total of 1,523 loans totaling $3.7 million as of January 1, 2025.
The Liquidity Fund was originally launched with $1 million in 2021. The current $1.5 million injection is the first part of a two-phase plan to release a total $3 million through the Liquidity Fund this year and distribute it to two united credit unions that partner with the USAID GROW Project: the Ukrainian United Credit Union (UUCU) and the United Credit Union of UNASCU (UCU of UNASCU). These funds will be passed on to partner credit unions to bolster MSME lending. The second $1.5 million distribution is planned for late 2025.
Eligible final recipients include legal entities and private entrepreneurs, including farms, MSMEs and cooperatives, as well as individuals in rural areas who are seeking to start or expand existing businesses.
This additional funding is particularly timely, as the newly enacted Law of Ukraine “On Credit Unions” (3254-IX, July 14, 2023) enables credit unions to expand lending to legal entities. This critical legislative change strengthens the ability of credit unions to meet growing loan demand, especially in safer regions such as western Ukraine, where agribusinesses continue to play a vital role in ensuring food security despite ongoing disruptions caused by the war.
“The $1.5 million 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,” said Ewa Sierzynska, Chief of Party for the USAID GROW Project.
Since its launch in 2021, the Liquidity Fund has facilitated a total disbursement of 1,682 loans totaling $4.36 million to micro- and small-business borrowers, helping them continue operations even during wartime. Notably, 915 of these loans were issued to women, demonstrating the initiative's commitment to inclusive support.
The USAID GROW Project expands access to finance for entrepreneurs, MSMEs, cooperatives and farmers in rural Ukraine to help grow their businesses. By enhancing credit union liquidity, operations and technical capacity, the project strengthens financial services, supports job creation, boosts sales and drives rural economic resilience. It also helps agribusinesses overcome financing barriers, reinforcing Ukraine’s agricultural sector and laying the foundation for sustainable recovery and prosperity.