Business Grants

Background 

The International Organization for Migration (IOM) in Armenia is implementing the Empowering Livelihoods and Economic Vitality in Fragile and Conflict Zones (ELEVATE) project, which is funded by the Korea International Cooperation Agency (KOICA). Within this framework, IOM is launching a call for Expressions of Interest for an Enterprise Development Fund (EDF) to support the economic recovery of Small and Medium-sized enterprises (SMEs) in Armenia. IOM intends to provide small business grants to SMEs of up to 5 million AMD. The financial grant will be based on an evaluation of needs, the potential for job creation of the selected businesses, and a business plan. Grants can be used for machinery, tools, materials, new product lines, upskilling, salaries and other fixed costs. Applicants will receive individual attention to their Expressions of Interest. Successful applicants will be invited to submit a full proposal within one month of being notified. All applicants should provide the information requested in the Expression of Interest and meet the minimum Eligibility Criteria, below, or their application will not be considered.

Eligibility Criteria

This call for proposals is open to SMEs that meet the following criteria:

• must be registered and functioning in one of the target communities of the following communities:
  • Tavush region: Ijevan, Noyemeberyan
  • Lori region: Stepanavan, Alaverdi
  • Shirak region: Artik, Akhuryan, Amasia
  • Gegharkunik region: Martuni, Vardenis, Chambarak
• must aim to expand their business and stay long term in one of the target communities and create job opportunities for all members of the community, including vulnerable groups, such as refugees, persons living with a disability and women.
• must have at least 2 registered employees and the intention of employing more.
• must operate in the following sectors: Service, Manufacturing and Production, Processing, Trade, Agriculture, Construction.
• must contribute 20-50 percent for co-funding (can be in kind and in cash).

Selection criteria 

Preference will be given to SMEs that integrate one or more of the following components:

1. Available resources/ prerequisites for the implementation of the business project;
2. Number of job placements provided though the employment/business opportunity;
3. Applicant qualifications based on experience and skills;
4. Economic benefit for the local community;
5. Sustainability and market viability;
6. Risks;
7. Social impact; including in the environmental sector, and the participation of vulnerable groups, including refugees, women and people with disability

Please refer to the Scoring Guide in Annex one.

The EDF will use a multi-stage selection process to review and deliberate on the potential for full time job creation by any applicant, and the sustainability of the business. In the first stage, applicants will fill and submit an expression of interest. Successful candidates will then be invited to develop a full proposal in an application form. The business committee will select investments based on the selection criteria that is used across all applications.

To be successfully chosen, SMEs will complete the following steps:

Expressions of Interest 

• Fill in the Expression of Interest, providing overall information on the business and the amount requested
• Follow the link: https://ee.kobo.iom.int/x/76Hfce2g
• If you need assistance, please reach out from Monday to Friday 10:00-16:00 via number 043 150024

Applicants must disclose outstanding personal and business debts at the time of applying

Full Application 

A selection of the most promising Expressions of Interest will be invited to be developed into full applications. Full applications will require a submission of the following:

Required:

• A complete list of co-owners and contact information
• A complete list of shareholders and their equity amount
• A copy of financial justification for your contribution
• A salary guarantee
• A supplier certificate or equivalent

Desired:

• Proof of registration
• Tax number and tax clearance letter issued by the tax office
• Last audited financial statements
• Company Social security number
• Proof of social security and personal income tax payment, including a list of employees and their salaries against receipts paid to the government

If requesting under 2 million AMD applicants will also submit a:

• 2–3-page Business plan, including details on your objectives, your marketing channels and competition, and your intended use of the funds

If requesting 2-5 million AMD applicants will also submit a:

• Business plan, including details on a marketing strategy, competition, and a financial plan for the coming 3 years
• Risk management plan

The requested amount should be justified with clear calculations and objectives.

To verify the information provided in the applications and in the accompanying business plans, IOM staff will conduct a second field visit to all the applicants who have been invited to submit a full application. IOM and the SME will meet to discuss the type of business development support they will receive through the grant, based on the information gathered through the questionnaires, site visits, interviews, and the preferences of the applicant.

How to apply 

1. Please read the full Expression of Interest carefully. 

2. Open the online link, complete it in all its parts and submit until 8 June 2025.

3. IOM staff will get back to you within 15 working days after closure of the EOI.

4. If short-listed, you will be notified and asked to complete the full application process. You will have 30 days after reception of first feedback from IOM to complete full application. Applicants who do not respect this deadline, will be automatically excluded from the selection process.

5. IOM staff will follow-up with successful applicants to schedule field visits and interviews and will provide instructions on how the selection process will proceed.

For questions, please reach out from Monday to Friday 10:00-16:00 via number 043 150024. 

For complaints, please refer to this https://forms.cloud.microsoft/e/GPWgMzqMdT