INVEGA may guarantee the repayment of losses arising from the investments made by financial institution in SMEs for loans with an intensity of 30-80 percent, by offering individual guarantees.
Guarantees for loans of large companies are provided for loans intended for:
- tangible investments – purchase, construction, repairs or reconstruction of fixed assets;
- intangible investments – technology takeover acquiring patents, licenses or other technical know-how not subject to patenting;
- working capital;
- refinancing of investments from enterprise funds (no earlier than within last 3 months before the date of receipt and registration of the guarantee application). In such case the guarantee application must be accompanied by documents supporting expenses and payment.
INVEGA can issue guarantees for loans granted by the following credit institutions
INVEGA does not guarantee loans granted for projects of cargo transportation enterprises in aimed at the acquisition of cargo transportation vehicles.
INVEGA does not guarantee loans the funds of which can also be used for personal (non-business) purposes.
If a business entity is operating for less than 3 years, maximum guarantee amount is 579 240 Euros, and when several guarantees are obtained, their balance may not exceed 579 240 Euros.
It shall not be required to mortgage assets purchased for loan funds if other more liquid assets at least corresponding to the value of assets purchased for loan funds are provided for mortgage purposes and this mortgage is sufficient to minimize the risk of project implementation.
When assets purchased, constructed, repaired or reconstructed for loan funds are mortgaged to the bank, participation of enterprises accounting for minimum 20% of the project value (for enterprises operating for up to 12 months – at least 10%) may qualify:
- when own funds of the enterprise are/have been invested in the investment part of the project,
- mortgaging to the bank tangible fixed assets possessed by the enterprise or personal property of enterprise shareholder or owner or other assets.
The value of mortgaged assets shall be calculated on the basis of its liquidation/ involuntary sale and must account for at least 20% of payments required to be financed with enterprise funds (for enterprises operating for up to 12 months – at least 10%).
An enterprise must participate in the project with its own funds or assets until it begins using the loan or proportionately concurrently with the use of loan funds.
An enterprise acquiring assets for guaranteed loan funds and mortgaging such assets shall not be considered as participating in project financing.
Loan for working capital:
Participation may qualify in the following cases:
- mortgaging to the bank tangible fixed assets of the enterprise accounting for minimum 20% of financed project value (for enterprises operating for up to 12 months – at least 10%) (mortgaged assets shall be valued at liquidation/involuntary sales value);
- when the enterprise does not have sufficient assets acceptable to the bank or is not able to mortgage assets to the bank due to valid reasons, measured enterprise equity-to-asset ratio may not be less than 20% (for enterprises operating for up to 12 months – at least 10%). This ratio shall be calculated on the basis of taken loan.
The rate of financing depends upon enterprise age and its SME status. For borrowers, SME entities 3/4, 2/3 or 1/2 the INVEGA guarantee fee:
- new enterprises (operating for less than 3 years) are financed 3/4 of the guarantee fee (a borrower pays 1%).
- very small (micro) and small enterprises operating for 3 years and more are financed 2/3 of the guarantee fee (a borrower pays 1%).
- medium-sized enterprises operating for 3 years and more and employing less than 250 employees are financed 1/2 of the guarantee fee (a borrower pays 1.5%).