The decisions on Loans under the instrument Entrepreneurship Promotion 2014–2020 are made by credit unions of the LCU Group, the instrument is coordinated by the Lithuanian Central Credit Union and managed by LTD “Investment and Business Guarantees” (UAB “Investicijų ir verslo garantijos”).

The instrument Entrepreneurship Promotion 2014–2020 is designed to help natural persons or micro and small companies to start and develop start-up business by issuing loans for up to EUR 25,000 and providing consultations.

The entrepreneurship promotion loans are designed to finance investments and/or working capital. A loan may not be intended to refinance the existing liabilities of borrowers towards financial institutions or to cover costs which are financed under a non-repayable subsidy.

Applications and business plans are required to be submitted to credit unions. Document forms are available on the website of the Lithuanian Central Credit Union (LCCU). To register for a consultation on the financing terms and conditions, please contact the consultant. Please keep in mind that according to terms and conditions of the measure, loan administration fee is not applicable to the borrower.

After the consultation and an agreement between the credit union and project manager reached, credit union assesses the ability to repay loan and calculate the guarantee needed. In case the resources do not cover the required amount of the loan, the credit institution may apply to INVEGA for an individual guarantee.

The recipients of loans in the framework of Entrepreneurship Promotion Fund 2014—2020 can use the global grants financial instrument Subsidies for business start-ups. The instrument, designed to compensate labour costs of workers employed under a contract of employment, aims to provide addition financial incentives to borrowers, facilitate market uptake in the initial stage of self-employment and encourage the creation of new jobs as well as maintain the existing ones.

Groups of persons facing difficulties in the labour market or organizing ones’ businesses (the priority group) will have the ability to receive higher compensation of labour costs in respect to people outside the priority group.

EUR 21.5 million has been allocated for the issue of these loans from the European Social Fund.

Loans will be issued under the following terms and conditions:

Loan period Loan agreements with borrowers will be signed  up to 30 September 2023
Loan term The maximum term of a loan is 10 years
Maximum loan amount EUR 25,000
Maximum interest rate 3-month EURIBOR (only for 10% of the loan) + a fixed interest margin of 3% (margin of the credit union)
Eligible borrowers Eligible borrowers must meet all of the following requirements, i.e. must be:

(1) micro or small companies, natural persons operating as sole proprietors or under a business certificate which meet the status of a SMB under the SMB Law;

(2) intending to start a business and/or operating for up to 1 year (from the date of registration of the company to the date of submission of the loan application);

(3) asking for a loan of up to EUR 25,000 (twenty five thousand);

(4) borrowers must operate or conduct some of their operations in Lithuania or EU Member States

Number of loans per a SMB One SMB is eligible to receive not more than one loan throughout the eligibility period.
State aid De minimis aid under Regulation No 1407/2013
Ineligible activities No financing under the instrument can be provided:

–     in cases specified in Article 1 of Regulation No 1407/2013;

–      to finance a contribution in kind;

–      for acquisition of infrastructure, land and real estate;

–      decommissioning and construction of nuclear power plants;

–      investments aimed at reducing greenhouse gas emissions;

–      investments into the housing sector, unless related to the promotion of energy efficiency or use of renewable energy;

–      production, processing and trade of tobacco and tobacco products;

–      companies subject to collective insolvency proceedings referred to in Article 4(3)(a) of Regulation No 1407/2013;

–      investments into the airport infrastructure, unless related to environmental protection or coupled with investments necessary to mitigate or reduce the negative environmental impact of airport infrastructure

–      borrowers that operate outside the EU Member States

Groups of persons encountering labour market or business organisation difficulties for which additional incentives will be created –           unemployed persons (persons defined in the Employment Support Law of the Republic of Lithuania registered with the territorial labour exchange for at least 6 months in the last 12 months before the submission of application to the instrument manager);

–           disabled persons (subject to submission of a disability certificate issued by the Disability and Working Capacity Assessment Office under the Ministry of Social Security and Labour to the instrument administrator);

–           persons under 29 years of age (the age at the time of submission of the loan application to the instrument manager);

–           persons above 54 years of age (the age at the time of submission of the loan application to the instrument manager);

–           women (the gender criterion is assessed at the time of submission of the loan application to the instrument manager);

–           those who create and/or will create “green” jobs (i.e. the loan will be used for investment into the equipment, production processes and/or safe and organic products which have a direct impact on energy saving, use of renewable energy sources, protection of resources and ecosystem, pollution and waste avoidance, etc.) (the attribution to this target group is at the time of submission of the business plan prepared for the loan to the instrument manager)

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