Individual Guarantees for Loans
What are the benefits?
Individual guarantees for loans, provided by INVEGA, offer solutions to unattractive or insufficient conditions and facilitate the access to the funding sources.
What companies are eligible?
Business start-ups, small and medium-sized enterprises, large companies.
What is the maximum amount?
The maximum amount of the guarantee may not exceed EUR 5 000 000, in the case of the subject has operated for less than 3 years on the date of submission of the guarantee application to INVEGA, may not exceed EUR 750 000 EUR.
Minimum proportion of own funds – 20 percent, intensity of guarantee 80 percent depending on the age of the company.
How does it work?
In order to use this financial instrument, subject is required to apply directly to the financial institution and agree on the amount of funding. The financial institution will assess the project, ability to repay loan and calculate the amount of guarantee needed. Subsequently, the financial institution will submit a request for a guarantee on a loan as well as other related documents to INVEGA.
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
- “Achemos” credit union
- Akademinė credit union
- Alytus credit union
- Anykščiai credit union
- Aukštaitija credit union
- Biržai credit union
- Centro credit union
- Druskininkai credit union
- Gyventojų ir smulkaus verslo credit union
- Grigiškiai credit union
- Grinkiškis credit union
- Ignalina credit union
- Joniškis credit union
- Jurbarkas kredito unija
- Kaišiadoriai credit union
- Cooperative Society ARKU credit union
- Kaunas credit union
- Kėdainiai region credit union
- Klaipėda credit union
- Klausučiai credit union
- LTL credit union
- Credit union “Saulėgrąža”
- Credit union “Zanavykų bankelis”
- Credit union “Žemdirbio gerovė”
- Credit union “Gargždų taupa”
- Credit union “Jonavos žemė”
- Credit union “Sūduvos parama”
- Home credit union
- Credit union “Tikroji viltis”
- Credit union “Vievio taupa”
- Kretinga credit union
- Credit union “Kupiškėnų taupa”
- Credit union”Germanto lobis”
- Credit union “Mano unija”
- Credit union “Mėmelio taupomoji kasa”
- Credit union “Moterų taupa”
- Credit union “Magnus”
- Credit union “Prienų taupa”
- Credit union “Skuodo bankelis”
- Širvintai credit union
- Vilkaviškis credit union
- Kelmė credit union
- Mažeikiai credit union
- Naftininkai credit union
- Pagėgiai credit union
- Pakruojis farmers credit union
- Palanga credit union
- Panevėžys credit union
- Pareigūnai credit union
- Pasvalys credit union
- Plungė credit union
- Radviliškis credit union
- Raseiniai credit union
- Rato credit union
- Rokiškis credit union
- Seda credit union
- Šilalė credit union
- Šilutė credit union
- Tauragė credit union
- Trakai credit union
- Ukmergė ūkininkų credit union
- Utena credit union
- Varėna credit union
- Vilnius credit union
Terms and Conditions
INVEGA does not guarantee loans granted for projects related with manufacturing of agricultural products, forest, fishery and aquaculture, production, primary processing. The list of products growing, production, primary processing of which is not eligible to INVEGA guarantees is annexed to the EU Treaty.
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 3 years and longer, maximum guarantee amount may be 1 448 100 Euros. If several guarantees are obtained, their balance may not exceed 1 448 100 Euros. Guarantee may account for 30-80% of loan amount.
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.
To secure repayment of a loan guaranteed by INVEGA, a borrower must mortgage tangible fixed assets of the enterprise purchased, constructed, repaired or reconstructed for loan funds.
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.
In case of investment loan:
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.
A borrower is charged a one-time guarantee fee for the issued guarantee. The amount of guarantee fee depends upon enterprise’s age.
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%).