As part of the government’s stimulus package to support recovery from the impacts of Covid-19, Uganda Development Bank Limited (UDB) received funding to support increase in production of essential goods and services for import replacement and export promotion. The fund beneficiaries are small, medium, and large enterprises in the sectors of Agriculture, Agro-processing and Manufacturing/Industry that produce for local, regional, and international markets.

UDB is the country’s national Development Finance Institution (DFI) with a mandate to accelerate socio-economic development in Uganda through sustainable financial interventions. The bank supports projects within the private sector that demonstrate potential to deliver high socio-economic value in terms of job creation, improved production output, tax contribution, and foreign exchange generation, among other outcomes.

The support for successful applicants will be in form of financial and non-financial interventions as provided through UDB’s various products listed below:

Financial Interventions

  • Term Loans
  • Asset Finance
  • Farmer Group Lending
  • Private Equity Investment
  • Working Capital and Trade Finance

Non-financial Interventions

  • Project Preparation
  • Business Advisory Services


What are the terms of Term Loans available through the opportunity?

  • Up to a period of 15 years.
  • Up to three (3) years of grace period.
  • Interest shall not exceed 12% for borrowing in UGX.
  • The minimum lending amount shall be UGX 100 million. The maximum amount shall be in line with the bank’s allowable limit.

Who can apply?


  • The enterprise should be registered in Uganda and owned by Ugandans with exception of projects of very strategic nature in terms of impact development.
  • The enterprise can be a start-up or an existing business seeking to expand.
  • The enterprise applicant must demonstrate feasibility and viability of the business.
  • Owners’ equity contribution must be between 10% and 60% depending on the project’s specifics and associated risks.
  • Applicants must be able to secure the loan using any form of acceptable collateral by the bank.


How to Apply


  • The application form can be accessed, completed and submitted online at
  • Hard copy forms can be accessed and submitted at UDB Head office at Rwenzori Tower or at a Post Bank Branch near you.
  • Applications should be submitted together with all the required documents to support the evaluation process.

The applications received will be assessed and there after submitted to the relevant management and board committees for a final decision. After the assessment, the applicants will be informed of the outcome.

The loan process takes an average of 45 days from application to the first disbursement; however, the process may be longer or shorter depending on the nature and complexity of the project.


Note: This is an ongoing call with no specific deadline, and eligible businesses are encouraged to apply.


For more information, please visit the UDB website: or email: or call +256 414 355 509.