Partial financing of interest is the provision of financial support of the European Union (EU) to the project promoter by financing part of interest paid by the project promoter. Business companies that receive financial support in the form of non-repayable subsidies can reduce their burden of obtaining financing, cut costs and plan business development with more ease.

During the 2014–2020 EU financing period, the joint measure of partial financing of interest is made up of three measures of partial financing of interest:

  • Partial financing of interest to increase the entrepreneurship of small and medium-sized businesses (SMEs) (the call was published on 8 March 2016);
  • Partial financing of interest to increase the productivity of micro, small and medium-sized businesses (SMEs) (the call was published on 16 August 2017);
  • Partial financing of interest to increase the efficiency of industrial companies (the call was published on 8 March 2016).

In total, EUR 21,721,502 from the European Regional Development Fund (ERDF) has been earmarked for the implementation of the measure of partial financing of interest.

Partial financing of interest to increase the entrepreneurship of SMEs

(measure No 03.1.1-IVG-T-809)

The implementation of this measure is aimed at increasing the entrepreneurship level of SMEs operating in all sectors of the economy. EUR 8,688,601 has been earmarked from the ERDF for the implementation of the measure.

The main requirements for obtaining partial financing of interest:

Potential applicant Place of registration of the project promoter Amount of financing Form of financing Availability period
SME operating for up to 5 years Vilnius Kaunas Klaipėda 80% –     A loan covered by an individual INVEGA guarantee and leasing from own funds of the financial institution or crowdfunding operator’s platform;

–     An investment loan not guaranteed by an individual INVEGA guarantee and leasing from own funds of the financial institution;

–     A loan covered and uncovered by an individual INVEGA guarantee and leasing under:
1. Financial instrument Open Credit Fund 2 (OCF2).
2. Financial instrument Open Credit Fund (OCF).
3. Financial instrument Risk-shared loans (RSL).
 –   A loan covered by a portfolio guarantee and leasing under the financial measure Portfolio guarantees.

–     A loan covered by a portfolio guarantee and leasing under the financial measure:
1. Portfolio Guarantees for Leasing Transactions.
2. Portfolio Guarantees for Loans.
 

 

 

 

 

 

Up to 36 months

Municipalities other than those located within Vilnius, Kaunas or Klaipėda cities 95%
SME operating for more than 5 years Vilnius Kaunas Klaipėda  50%
Municipalities other than those located within Vilnius, Kaunas or Klaipėda cities  95%
SMEs All municipalities in Lithuania 50% – A loan covered and uncovered by an individual INVEGA guarantee and leasing under Risk-shared loans and leasing:
1. A working loan and credit line for SMEs operating in all sectors of the economy.
2. An investment loan for SMEs operating in the trading sector.

Partial financing of interest to increase the productivity of SMEs

Measure No 03.1.1-IVG-T-810, the call for proposals

The implementation of this measure contributes to the improvement of productivity of SMEs using modern production equipment or modernising the existing equipment. EUR 8,688,601 has been earmarked from the ERDF for the implementation of the measure.

The main requirements for obtaining partial financing of interest:

Potential applicant Place of registration of the project promoter Amount of financing Form of financing Availability period
SMEs operating in the manufacturing and services sector All municipalities in Lithuania 50% An investment loan covered and uncovered by an individual INVEGA guarantee and leasing under Risk-shared loans and leasing for SMEs operating in the service and manufacturing sectors Up to 36 months

Partial financing of interest to increase the efficiency of industrial companies

(measure No 03.1.1-IVG-T-811)

The implementation of this measure is aimed at contributing to the improvement of energy efficiency of industrial companies. EUR 4,344,300 has been earmarked from the ERDF for the implementation of the measure.

The main requirements for obtaining partial financing of interest:

Potential applicant Place of registration of the project promoter Amount of financing Form of financing Availability period
Industrial companies (both SMEs and large companies) All municipalities in Lithuania 100% An investment loan and leasing covered and uncovered by an individual INVEGA guarantee for the installation of equipment and technology (technological solutions) enabling to increase energy efficiency of companies. Up to 60 months

Please note:

Applications must be submitted (registered at INVEGA) within 3 months of the date of signing of the financing agreement. The compensation period will be reduced accordingly for applications submitted after this deadline (Subparagraph 41.6 of the Specification of the terms and conditions of financing of the measure).

The period of processing of applications is up to 30 days from the date of receipt of a duly completed application with the necessary accompanying documents by INVEGA.

An investment loan is a loan whose 70% may be intended for investment and up to 30% to finance the working capital of the borrower.

The interest rate used as a baseline for the calculation of the maximum amount of partial financing of interest is the interest rate specified in the financing agreement applicable on the date of signing of the financing agreement. If this interest rate is above 7 per cent per annum, partial financing of interest is calculated on the basis of the annual interest rate of 7 per cent (Paragraph 39 of the Specification of the terms and conditions of financing of the measure).

Interest may also be partially financed where the loan or leasing is intended to refinance investments or working capital paid out of own funds of the applicant or project promoter (not earlier than in the last 3 months prior to the date of signing of the financing agreement) (Paragraph 21 of the Specification of the terms and conditions of financing of the measure).

Financing of interest is provided to the project promoter as de minimis aid under Commission Regulation (EU) No 1407/2013 in all sectors with the exception of sectors listed in Article 1(1) (Chapter IV of the Specification of the terms and conditions of financing of the measure).

Call for proposals for project financing under joint measure of partial financing of interest No J03-IVG-T.

Call for proposals for project financing under joint measure of partial financing of interest No J03-IVG-T (2017-08-16).

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