Compensation for the guarantee fee to entities engaged in alternative activities
What are the benefits?
The state provides aid to create more favourable conditions to entities operating in rural areas that are engaged in activities other than primary production of agricultural products (alternative activities) and implement investment projects. Such entities are compensated for the guarantee fees on the loans taken by them from financial institutions with INVEGA‘s individual guarantee.
Who is eligible?
Economic operators that have registered an agricultural holding in a rural area and are engaged in alternative rural development activities (i. e. activities related to the food sector, forestry or any other activity not classified as an agricultural activity).
Criteria for economic operators‘ eligibility for assistance:
- Meets the criteria for a small or medium enterprise;
- Did not and does not participate in certain measures under the Rural Development Plan for 2004–2006 or the National Rural Development Programme for 2007–2013;
- Has not received other aid as defined in p. 6.4. of the Rules
Entities operating in rural areas that are not in difficulty (as defined in Article 2 of (EU) No 651/2014) can receive state aid on the following terms and conditions:
- 80 % of the guarantee fee is compensated;
- Limitations on aid intensity and on state aid amounts per investment project as well as rules for summing up of aid amounts apply.
How does it work?
- Apply to a financial institution for a loan or leasing services.
- Along with documents on the provision of a guarantee, complete the application for compensation of interest (an annex to the main application), which will be submitted to us by the financial institution together with other documents (the application forms are here).
- We will take a decision on the granting of the guarantee and compensation of the guarantee fee.
- You will be issued a guarantee and receive the compensation for the guarantee fee, will conclude a financing agreement with the financial institution, and will receive financing.
Compensation terms and conditions
The guarantee fee is compensated for investment projects involving activities other than primary production, processing or marketing of agricultural products provided that the project expenditure is intended for investments in
- Tangible assets – investments in land, buildings, machinery, equipment and installations;
- Intangible assets – expenditure related to intellectual property.
Completed application for guarantee including its annex regarding compensation of guarantee fee (the application form is here).
Order of the Minister of Agriculture of the Republic of Lithuania No 3D-161 of 12 April 2007 ‘Regarding approval of the Rules for Compensating Loan Recipients for the Guarantee Fee‘.