Alternatyva Instrument - Alternative Lending for Businesses

The largest portion of the loan, 100 %, financed under the Alternatyva instrument is up to EUR 500,000. The maximum amount of the loan depends on the particular lending financial institution.
Loans may not be used for the refinancing of the existing financial obligations or for real estate development.

What are the benefits?

Loans granted under the incentive financial instrument Alternatyva enable small and medium-sized entities (hereinafter – SMEs) to obtain the necessary financing for their business through alternative finance providers. Loans may be granted to finance an SME’s investments and/or to supplement the working capital shortage provided that such financing is related to the launch of the SME’s new business activity or to the maintenance, strengthening or development of the existing activity.

SMEs that comply with the SME’s status under the SME Law and which may receive de minimis aid from the State as well as, according to a financial intermediary’s assessment, the activities of these SMEs are sustainable and the planned cash flows are sufficient to fulfil their obligations.

For more detailed information on de minimis aid, please see the section De minimis aid on the website of the Competition Council of the Republic of Lithuania.

What are the benefits?

Loans granted under the incentive financial instrument Alternatyva enable small and medium-sized entities (hereinafter – SMEs) to obtain the necessary financing for their business through alternative finance providers. Loans may be granted to finance an SME’s investments and/or to supplement the working capital shortage provided that such financing is related to the launch of the SME’s new business activity or to the maintenance, strengthening or development of the existing activity.

What companies are eligible?

SMEs that comply with the SME’s status under the SME Law whose activities, according to a financial intermediary’s assessment, are sustainable and the planned cash flows are sufficient to fulfil their obligations.

 

What is the maximum amount?

Up to EUR 50 million from the INVEGA fund (returned and/or that will be returned to this fund and from the state budget of the Republic of Lithuania) is earmarked for the implementation of this instrument.

The largest portion of the loan available under the Alternatyva instrument is up to EUR 200,000 and no more than 90 % of the loan amount is financed. The maximum amount of the loan depends on the particular lending financial institution.

How does it work?

Loan applications should be submitted to the financial institution that has signed a cooperation agreement with INVEGA.

A loan may be granted to an SME for a period not exceeding 24 months.