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.

An alternative finance provider may be:
  • Financial companies established and operating in the Republic of Lithuania (except for credit institutions and related companies), whose main activity includes lending to legal entities and natural persons engaged in individual activities, including factoring and financial lease (leasing);
  • Collective investment undertakings* whose business documents provide for the investment of the funds of the collective investment undertaking in the forms of a loan or management companies, if their management is transferred to management companies.

* Entities operating in accordance with the Law on Collective Investment Undertakings of the Republic of Lithuania, the Law on Alternative Managers of Collective Investment Undertakings of the Republic of Lithuania, and the Law on Collective Investment Undertakings for Informed Investors of the Republic of Lithuania.

Financing to SMEs may take the form of a loan, factoring or financial lease (leasing).

 

The conditions for granting loans to SMEs are as follows:

  • Alternatyva under market conditions – loans are provided to SMEs at market conditions.
  • Alternatyva as de minimis aid – the cost of the loan does not exceed 7 % of the annual interest rate, including all and any taxes.

What companies are eligible?

Alternatyva under market conditions
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.

Alternatyva as de minimis aid
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 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.

Alternatyva at market conditions
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.

Alternatyva as de minimis aid
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.

 

How does it work?

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

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

Alternatyva as de minimis aid
A loan may be granted to an SME for a period not exceeding 60 months.

 

Representatives of small and medium-sized businesses may apply to the following financial intermediaries:

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Atnaujinta 2021-01-27