What are the benefits?
Loans are granted under the incentive financial instrument Alternative, which enables small and medium-sized enterprises (SMEs) to obtain the necessary financing for their business through alternative financing providers.
Loans may be granted to finance the SME’s investments and / or to supplement the working capital shortage provided that such financing relates to the start-up of a new activity of the SME or to the maintenance, strengthening or development of the existing activity. Until 1 December 2020, the Alternative instrument can be used to finance the refinancing of loans if the financing conditions for existing borrowers are improved, i.e. the loan repayment schedules are changed (the repayment term is extended) or the repayment of loan instalments is postponed.
Financing for SMEs can be provided in the form of a loan, factoring or financial lease (leasing).
Loans to SMEs are granted under market conditions.
What companies are eligible?
SME entities that qualify as SME entities under the Law on SMEs, whose activities, in the opinion of the Financial Intermediary, are sustainable and the planned cash flows are sufficient to perform the liabilities.
Who is an alternative financier?
An alternative financing provider or alternative financier may be:
- Financial companies established and operating in the Republic of Lithuania (except for credit institutions and their 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 form 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.
What is the maximum amount?
Up to EUR 50 million from the INVEGA fund (funds that returned and / or will return and from the state budget of the Republic of Lithuania) has been allocated for the implementation of this instrument.
The largest portion of the loan from the funds under the Alternative instrument is EUR 200,000.
How does it work?
For loans, one should apply to the financial institution that has signed a cooperation agreement with Invega.
A loan to an SME can be granted for the maximum period of 24 months.