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% – Guaranteed by INVEGA individual guarantee loan and leasing;
– An investment loan and leasing;

– A loan, leasing and credit line under:
1. Financial instrument Open Credit Fund 2;
2. Financial instrument Open Credit Fund;
3. Financial instrument Portfolio guarantees for loans;
4. Financial instrument Portfolio guarantees for leasing;
5. Financial engineering instrument Risk-shared loans;
6. Financial engineering instrument Portfolio guarantees.

 

 

 

 

 

 

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% – An investment and negotiable loan under financial instrument Risk-shared loans
for SMEs operating in all economic sectors.

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 under financial instrument Risk-shared loans  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, to finance the installation of equipment and technology (technological solutions) enabling to increase energy efficiency of companies. Up to 60 months

Please note:

Partial interest compensation is not applicable for:
– the acquisition of goods transport (trucks, trailers, semi-trailers, etc.) carried out by enterprises engaged in freight transport by road (business code according to NACE 2 49.41);
– f
armers;
– for working loans that are provided from own funds of a bank or credit institutions;
– n
on-commercial (M1 category) destination cars;
– when commercial real estate is purchased for lease, and the activities of the company according to the EVRK code do not belong to the NT lease;
-other lending for refinancing.

Exceptions:
– for non-commercial (M1 category) car dealerships, interest is only remunerated to companies whose principal business is car rental;
– real estate purchased by the company intended for commercial use.

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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