Guarantees for Large Companies

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?

Large companies with at least 250 employees.

What is the maximum amount?

The maximum guarantee amount is EUR 1,500,000. If several guarantees have been obtained, the aggregate outstanding amount may not exceed EUR 1,500,000. The guarantee amount may be up to 80% of the principal amount.

How does it work?

In order to use this financial instrument, large company 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, repair or reconstruction of non-current assets;
  • intangible investments: technology transfer by acquiring patents, licences or other unpatentable technical know-how;
  • working capital.

The need for investment or working capital must be recognised by INVEGA as valid and paying off and the borrower as financially capable of fulfilling its financial liabilities.

Loans that do not qualify for guarantees

INVEGA does not provide guarantees for loans:

1. issued for the projects related to the growing, production and primary processing of agricultural products, forestry, fishery and aquaculture. The list of products whose growing, production and primary processing is excluded from the scope of INVEGA guarantees is annexed to the EU Treaty;
2. issued for the projects of freight companies intended for the acquisition of freight vehicles;
3. where the borrower operates in finance or insurance, manufacture or wholesale of alcoholic beverages and/or ethyl alcohol, manufacture of and trade in weapons, manufacture or wholesale of tobacco products, organisation of gaming or betting, real estate operations or use and/or consumption of human stem cells.

A loan does not quality for an INVEGA guarantee if its aim is to:

1. refinance financial liabilities to other credit institutions and/or other legal or natural persons;
2. refinance investments made out of the funds of the borrower;
3. purchase shares or interest in the capital of another economic operator;
4. acquire assets which may also be used for purposes other than business (personal);
5. finance investments made outside the Republic of Lithuania.


To secure the repayment of the loan guaranteed by INVEGA, the borrower must mortgage non-current tangible assets of the company that are purchased, built, repaired or reconstructed using the funds of the loan.

The assets purchased using the funds of the loan may not be pledged if, in the opinion of the credit institution, they constitute inadequate security due to their low liquidity or the borrower provides other more liquid assets with at least the same value as the assets purchased using the funds of the loan and such security is sufficient to minimise the risks of project implementation.

Requirements applicable to borrowers

1. a borrower is not in bankruptcy or undergoing restructuring;
2. a borrower is eligible for de minimis aid;
3. the credit rating of the borrower established by the credit institution is at least equivalent to “B-” or “B3” according to the ratings used by international rating agencies (Standard and Poor‘s, Fitch and Moody‘s) or the credit institution provides a rating equivalent to these ratings;
4. the equity ratio of the borrower must be at least 20% after the issue of the loan. The equity ratio is calculated in relation to the loan to be issued and according to the last balance sheet of the financial statements of the borrower (annual or quarterly) as the ratio of the equity capital to total assets of the borrower disclosed in its balance sheet.

Participation of the borrower in project funding

In the case of an investment loan, the participation of the company must be at least 20% (the participation is in the form of payment of some of the invoices using own funds of the company). INVEGA may request a higher participation percentage for the implementation of particular projects.
In the case of working capital loan mortgaging to the bank tangible fixed assets of the enterprise accounting for minimum 20% of financed project value.

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The borrower must pay a one-off guarantee fee for the issued guarantee which makes up 3.6% of the guarantee amount. The guarantee fee must be paid before the issue of the guarantee bond. No subsidies of the guarantee fee are available to large companies.

If the borrower repays the guaranteed amount of the loan prematurely and uses the guaranteed loan partially, the guarantee fee is not recalculated and refunded.

Guarantee fee in the case of extension of the guarantee period

The guarantee fee must also be paid when the borrower and credit institution agree to modify the loan repayment schedule and the guarantee period is extended as a result of the new schedule. In this case, the guarantee fee is charged on the amount of the extended portion of the guarantee at the fee rate applicable at the time of the issue of the guarantee.

Guarantee fee in the case of amendment of the guarantee terms and conditions

In the case of increase in the guarantee amount or extension of the guarantee period, the guarantee fee is calculated according to the modified loan repayment schedule provided by the credit institution and taking into account the original loan repayment schedule.

No minimum guarantee fee for the amendment is applicable.

Refund of the guarantee fee in the case of guarantee cancellation

At the request of the borrower, the guarantee fee is refunded partially if the guarantee is cancelled and the loan funds have not been disbursed (not even EUR 0.01 of the loan may be disbursed by the credit institution). In this case, the portion of the guarantee fee for the unused guarantee period (from the date of issue of the guarantee to the submission (registration) of a request for a partial refund of the guarantee fee to INVEGA) is refunded.

An INVEGA guarantee takes the form of minor state aid for business provided according to de minimis requirements, i.e. the amount of aid granted in the period of three years may not exceed EUR 200,000.