Loyola's in-country partners are providing support in organizing and operating the business incubators in the respective cities. They help identify promising entrepreneurs and small businesses, participate in assessing their commercial viability, and provide liaison with local governments.

The BID Program has discussed cooperative opportunities with the following organizations:

Western NIS Enterprise Fund. Capitalized initially with U.S. $150 million by the U.S. government, the Western NIS Enterprise fund was created to support the development of small and medium-sized private enterprises in Ukraine, Moldova, and Belarus through the investment of capital. A major part of the fund's resources is allocated to early-stage venture capital -- investments between U.S. $1,000,000 - $8,000,000 in medium-sized private firms in specific industry sectors including agribusiness, construction materials, and energy. To prepare these companies for growth and to ensure their competitiveness, the fund provides capital, know-how transfer, management information systems, corporate governance, and recruiting assistance. In addition, the fund's Small Business Loan Fund (SBLF) offers loans and leases ranging from U.S. $10,000 to $100,000 directly to small, privately-held businesses and entrepreneurs in Ukraine. The SBLF makes loans primarily in the agriculture and food processing sectors, and currently operates within a 200 kilometer radius of Kiev, Lviv, and Kharkiv.

Contact information:
Western NIS Enterprise Fund: 4 Muzeyny Provulok,
3rd floor, Kiev 252001,
phone: (044)247-5580/1/2/3; fax: 247-5589;
e-mail: mbudzher@cclink.wsnisefk.com;
Small Business Loan Fund: Maryny Raskovoi,
2nd Floor, Kiev, Ukraine 252167;
phone: (044)517-4222; fax: (044)517-8145;
e-mail: ivf@ubs.carrier.kiev.ua

Eurasia Foundation. The Eurasia Foundation's USAID-funded Small Business Lending Program works with commercial banks to provide hard currency loans for small producers and service enterprises in economically depressed areas. Loans are made to enterprises with under 100 employees, whose activities focus on the production of goods or services (trading companies are not considered) and enterprises that are 100% Ukrainian owned. The maximum loan size is $100,000 with a fixed annual interest rate of 18% and a repayment term that is designed to meet the needs of the enterprise, but is no longer than two years in duration. Eurasia has asked that partner banks bear at least 50% of the credit risk for loans in the first year, moving toward 100% over the life of the bank's relationship with Eurasia.

Contact information:
26 Lesya Ukrainka, #502,
Kiev 252133;
phone: (044)294-8209;
fax: (044)295-1065/7402;
e-mail: sblp@efsblp.freenet.kiev.ua

NewBizNet. Since September 1994, Development Alternatives, Inc. (DAI) and its local subcontractors, including Lviv Institute of Management in Lviv, PROMSNAB in Kharkiv, INTMAR Business School in Odessa, have been implementing the NewBizNet Project, an innovative program to support the development of small-medium enterprises (SME). NewBizNet provides this support through technical assistance, institutional strengthening, business training, regulatory reform, and information services. Taken together, these services were organized around two principal activities that facilitate the development of SMEs in the Ukraine and Moldova. These activities are Business Support Centers (BSCs), which provide business advisory services, training services and a business information network; and Local Support Networks (LSNs), which coordinate with other small business programs and activities in Ukraine. NewBizNet also works to strengthen the capacity of business associations in four cities (Kiev, Odessa, Kharkiv, and Donetsk) as effective advocates for small business, and supports coalition-building among these associations.

Contact information:
1/5 Dimitrova, 2nd floor,
Kiev 252001;
phone: (044)247-5791;
fax: (044)247-5798;
e-mail: postmaster@dai.kiev.ua

IFC Post Privatization Project/Business Centers. The IFC received initial funding from the British Know How Fund in 1994 to establish four business centers in Lugansk, Mariupol, Cherkassy and Khmelnitsky. In 1996, USAID funded four additional business centers in Dniepropetrovsk, Sumy, Vinnitsa and Zhitomir. Business centers provide services to SMEs: training programs, writing business plans, and commercial, legal and educational information.

Contact information:
4 Bohomoltsya Street,
5th floor, Kiev 252024;
phone: (044)293-4255/7389;
fax: (044)293-0539;
e-mail: in Dnipropetrovsk: root@ifc.dp.ua,
in Sumy: bcenter@ifc.sumy.ua,
in Vinnitsya: ifcvinn@sovam.ua.com,
and in Zhitomir: ifc@hq.polesye.zhitomir.ua

The Alliance for Enterprise Development. The Alliance is a consortium of four non-profit, U.S. private voluntary organizations (Citizens Democracy Corps, International Executive Service Corps, MBA Enterprise Corps, and Volunteers in Overseas Cooperation) providing technical expertise and management to complement USAID programs in the areas of privatization, capital markets development, SME development, energy, and agriculture. Services for SME enterprises include managerial, sales, and financing advice and introductions to potential financial and business partners.

Contact information:
7 Zankovetskoi Street,
#21, Kiev 252001;
phone: 228-1165/0483, 229-3961;
fax: 229-2995;
e-mail: iesc@iescu.freenet.kiev.ua

Business Development Training for Women Entrepreneurs/Support for Women's Business Associations. The NIS-US Women's Consortium/Winrock International, with its subcontractors, Counterpart International and Counterpart Creative Center (CCC), a Ukrainian PVO, provide Ukrainians with training in business management through free seminars held in several regions six times per year. Seminars cover subjects such as business planning, credit, and laws and regulations for small businesses. CCC trainers also provide one-on-one consultations to graduates of the seminars on refining business plans, assessing credit needs, and completing loan applications. In addition, the NIS-US Women's Consortium provides training to women across the Ukraine on connecting with credit unions, taxation, and other issues related to opening and operating small businesses, and provides competitively-awarded small grants to women's business associations.

Contact information:
NIS-US Women's Consortium/Winrock International:
5/2 Zankovetskaya #49, Kiev 252001;
phone: 229-6543, fax: 228-0685;
e-mail: consort@winrock.kiev.ua;
Counterpart Creative Center:
39 Pushkinskaya St., #4, Kiev 252004,
phone: (044)225-6272;
fax: (044)230-2360;
e-mail: lyuba@cpkiev.freenet.kiev.ua

U.S. Peace Corps. The Peace Corps provides long-term American volunteers in a public administration, privatization, banking, finance, agriculture, mass media, and English instruction.

Contact information:
111-A Saksaganskogo Street,
Kiev 252032;
phone: (044)220-1183;
fax: (044)220-6531

U.S. Department of Commerce/Foreign Commercial Service (FCS). In addition to providing U.S. companies with information on trade and investment opportunities in Ukraine, FCS administers the Special American Internship Training (SABIT) Program which gives Ukrainian managers and scientists experience working in a market economy by placing them in 3-6 month internships in U.S. companies. Its Business Information Services also helps Ukrainian companies find joint investment partners in the United States.

Contact information:
7 Kudriavsky Uzviz, #212,
Kiev 254053;
phone: 417-1413;
fax: 417-1419

Counterpart. Couterpart is operating a physical incubator for small businesses in Lviv, which is also funded by USAID.

Contact information:
Counterpart, 39 Pushkinskaya St., #4,
Kiev 252004;
phone: (044)225-6272;
fax: (044)230-2360;
e-mail: lyuba@cpkiev.freenet.kiev.ua

Ministry of Science and Technology. ITRI and the Ukrainian Ministry for Science and Technology have signed an agreement to cosponsor joint projects and help identify qualified clients from its ranks of scientists and engineers who have been successful in obtaining grants for developing their ideas for commercial products or services. The BID Program is cooperating with the Ministry's new incubator program, and has participated in joint workshops.

State Innovation Fund of Ukraine The Innovation Fund of Ukraine has 27 offices throughout the Ukraine, and has provided loans to companies for restructuring to meet the demands for domestic goods and services and to become competitive in international markets. The fund is joining with the BID Program on a cost-sharing basis to help those entrepreneurs who meet the selection criteria established by both organizations. BID will help identify potential candidate companies that have applied to the Innovation Fund, review their qualifications, and help those companies with training, management and assist in the search for additional sources of investment capital.

State Committee for Developing Entrepreneurs and SMEs. The BID Program has been cooperating with this State Committee and participated in a number of joint programs and seminars. To date such programs have occurred in: Kiev, Kharkiv, and Dnipropetrovsk. The State Committee has invited Dr. Katerniak from the BID Program to be a consultant to a group on developing tax incentives and deregulation, to help promote creation of SMEs in Ukraine.

The BID Program is cooperating with other Western-sponsored programs to leverage development funds, avoid duplication of effort, share information, and to jointly sponsor projects.

European Bank for Reconstruction and Development (EBRD). The priorities in the Ukraine for the European Bank for Reconstruction and Development (EBRD) are to develop private enterprise through credit lines and equity funding for small and medium-sized enterprises, and through direct financing of both joint-venture and local private companies. The bank will place special emphasis on working with Ukrainian companies and developing strong ties with the local business community. Initially, most of the bank's private sector operations are likely to be based on the extension of credit lines to small and medium-sized enterprises (SMEs).

Science and Technology Center of Ukraine (STCU). The Science and Technology Center of Ukraine (STCU) expressed an interest in utilizing the BID training facilities in Kiev and Kharkiv. An agreement is pending STCU Board action.

International Renaissance Foundation (IRF). The IRF is sponsoring a business incubator program for retired military officers and has expressed an interest in jointly supporting selected ventures.

U.S. Civilian Research and Development Foundation (CDRF). Most recently, the new U.S. Civilian Research and Development Foundation was created to fund former Soviet scientists and engineers. Twenty percent of the $3 million targeted for Ukraine will be for development of commercial technologies. The BID Program and the CDRF have signed a MOU to cooperate in funding, developing and sustaining technology-based small businesses. BID will work with CRDF client companies that can benefit from receiving training in business development and help the CRDF in seeking additional funding to support the provision of education and for other mutually beneficial activities.

Alfa Capital Management.

A Memorandum of Understanding has been signed between Alfa Capital Management and the BID Program. Alfa Capital and ITRI will work together to identify develop, and grow profitable small businesses in Ukraine. ITRI and Alfa Capital will share information (on a non-exclusive basis) to facilitate their review and evaluation in assessing the investment potential of BID client companies.

BID and Alfa Capital will work together to identify additional investment funds and investors that will leverage and augment investments in incubator clients. The partnership will also use various financial mechanisms and investment options to jointly fund incubator clients while providing additional educational and management training support for those incubator clients which Alfa Capital selects as investment candidates.

Additional services the BID Program will provide Alfa Capital include conducting due diligence, credit reporting, management evaluation, copyright/patent examination, and market research for both incubator and non-incubator investment candidates. BID will also provide Alfa Capital a client account management service wherein those clients that have received Alfa funds will be assigned a BID client account manager who will monitor and report on the progress of clients.

The Defense Enterprise Fund

The Defense Enterprise Fund has formed a new management company called Global Partner Ventures (GPV). A Draft Memorandum of Understanding between Global Partner Ventures (GPV) and the International Technology Research Institute at Loyola College of Maryland is currently being considered by GPV Management.

Global Partner Ventures (GPV) is headquartered in Richmond, Virginia. It has an interest in promoting a dynamic market driven economy in the Ukraine. To achieve this goal, GPV and BID will work together to identify Ukrainian businesses that have the capability to best utilize venture capital to manufacture products or provide services that have applications to consumer or industrial markets.

GPV and BID have the purpose of providing the financial resources and consulting services that will help enable the development and growth of private sector businesses in the Ukraine.

The BID Program will help identify and evaluate Ukrainian organizations that have the potential to qualify for GPV funding and share all necessary information (on a non-exclusive basis) available to BID, that will aid GPV in their assessment process. Other services that the BID Program will offer to GPV include:

• Review select firms who have applied for GPV funds to assess whether they would meet the criteria to receive funding under the BID Program.
• Assist with business plan preparation and provide additional training support for those Ukrainian organizations which GPV selects as investment candidates.
• Provide GPV with consulting services such as conducting due diligence, credit reporting, management evaluation, copyright/patent examination, and market research for GPV investment candidates or client firms.
• Provide GPV a client account management service wherein clients that have received GPV funds will be assigned a BID client account manager. The account manager will monitor and report on the activities and progress of the firm and quickly move to address potential problems after consulting with GPV.
• Produce a detailed assessment of the management, capital, technological, and intellectual assets of those firms that have applied to GPV for venture funding and to assess the core competencies of manufacturing plants and research and development institutes, and the skills and knowledge of its workers.
• Assist GPV in helping to develop strategies that will preserve employment opportunities through converting, or creating jobs fitting to the skills and experience of workers affected by defense downsizing.
• Negotiate on a case-by-case basis, the use of financial mechanisms and investment options wherein the BID Program and GPV agree to jointly fund a Ukrainian organization.
• Work together to identify additional investment funds and business investors that will leverage and augment both the BID Program and GPV investments.
• Respect the intellectual property and copyrighted material that is provided for the use of either party to the other, and not reproduce or disseminate without written permission.