Direct COVID-19 Loans

From 2021 June 17 23:59 acceptance of Direct COVID-19 Loans applications is suspended.

If loan agreements are signed after 6 April 2021, the expenses shall be repaid no later than within 8 months after signing the loan agreement. In case loan agreements are signed before 6 April 2021, the term of repayment may be extended. Change fee is 100 EUR.


What are the benefits?

The main objective of the measure is to reduce the impact of the COVID-19 pandemic on businesses and entrepreneurs by providing loans to finance operating costs of businesses.

Who is eligible?

Small- and medium-sized enterprises (SMEs) and large companies can apply for the new measure.

Loans are provided to businesses that meet the criteria for assistance set by the Government of the Republic of Lithuania (Resolution No 1226), with the main criterion being a drop in turnover of more than 30 % during the second quarantine period and, in the case of new companies, a restriction on their activities.

Businesses applying for loans must meet the minimum reliable tax payer criteria at the time of submission of the application, and must have submitted the set of financial statements for the year 2019 to the Centre of Registers, which is used to assess whether, as at 31 December 2019, the applicants were not considered to be in difficulty. A borrower who, together with a group of companies (if the borrower is a member of a group of companies), was in difficulty as of the said date, but is not considered to be in difficulty at the time of the application, can also apply for a loan.

Please note that a borrower who is a very small or small enterprise is not considered to be in difficulty if it is not subject to collective insolvency proceedings and no rescue and restructuring aid is granted. Moreover, borrowers cannot be bankrupt or in the process restructuring, and must meet certain other requirements.

More information:

  • Description of the conditions for the implementation of the incentive financial instrument “Direct covid-19 loans”;
  • Annex No 1 to the agreement;
  • Loan amount calculator;
  • Resolution No 1226 (subparagraph 6.1) of the Government of the Republic of Lithuania of 4 November 2020;
  • Order No 4-1171/A1-1301 of the Ministry of the Economy and Innovation of the Republic of Lithuania and Ministry of Social Security and Labour of the Republic of Lithuania of 30 December 2020 “On the Approval of the List of Restricted and Indirectly Restricted Economic Activities During Quarantine”;
  • Clarification No 3-123 of the Ministry of Economy and Innovation of the Republic of Lithuania of 13 January 2021 “On the List and Application of Restricted and Indirectly Restricted Activities During Quarantine” and the Annex to the Clarification.
    • Agreement for direct COVID-19 loan borrowers:
    • General term and conditions;
    • Special terms and conditions;
    • Annex No to the agreement.

What is the maximum amount?

EUR 36 million has been allocated for the implementation of the measure from the state budget of the Republic of Lithuania.

Only one loan may be granted to one borrower, which may not exceed the average monthly turnover and in any case may not exceed EUR 100,000. In addition, in accordance with the regulations of the European Commission, the amount of the loan may not exceed double annual wage bill (including tax) of the borrower’s employees or 25 per cent of the borrower’s turnover in 2019.

The average monthly turnover calculation period is determined and the loan amount is calculated according to the methodology approved by INVEGA and the loan amount calculator prepared according to this methodology.

Direct loans are provided on preferential terms, i.e., at reduced interest, which depends on the loan period and status of the borrower. The highest interest rates can be up to 0.69 % for SMEs and up to 1.69 % for large companies.

There are no contract conclusion and administration fees, but a EUR 100 fee will apply to contract modifications. The loan or part of it can be repaid earlier without additional fees.


The evaluation deadline of the applications received after 1 February 2021 is extended to 30 business days (by Order No B-36 of 12 February 2021 of the General Director of INVEGA).

The evaluation deadline has been extended due to a very high number of applications submitted, in accordance with paragraph 1.5.1 of the terms of the Direct COVID-19 Loans measure.

How does it work?

The loan must be applied for to INVEGA by submitting the application and related documents via the application system.

The following must be submitted:

  • Application;
  • SME status declaration, for non-large companies (how to fill in the declaration);
  • Current shareholder structure of the borrower and a free form document indicating the relationship between the business entity and associated companies;
  • Business plan (Annex No 1 to the Description) in MS Excel format, which briefly describes the business, current and projected financial condition (estimates), reflecting the business entity’s ability to pay contributions on time, and data for assessing the turnover decline of business entities. Businesses must report turnover for each of the following months: November-December 2019, January 2020, November-December 2020 and January 2021.
  • Decision of the management body of the business entity regarding application for loan (this could be an order of the director, an extract from the minutes of the shareholders’ meeting or another document, depending on who holds this right in accordance with the business entity’s founding documents). Decisions on the pledge of property and appointment of authorised persons may also be required.

INVEGA shall have the right to request additional documents in order to provide only adequately-documented and assessment-based funding.

The risk of failure to repay the loan is assessed based on the data provided by the business entity. The risk criteria are expressed by the following indicators:

EBITDA (profitability) – the value of this indicator must be positive in each financial year until the loan is repaid.
DSCR (debt service coverage ratio) – the value of DSCR must be at least 1 in each financial year until the loan is repaid.
In cases where EBITDA and DSCR ratios are not met and INVEGA estimates that the business entity’s cash flows are insufficient to cover planned expenses, payments and loan, the loan shall not be granted.

Please note that the data declared by the entrepreneurs will be verified at a later stage and, for example, if the actual turnover did not fall by 30 % in the comparison periods, it shall be considered that the state aid was received unlawfully, and the loan including interest calculated from the date of state aid provision until the date of its recovery as laid down in Regulation (EU) 2015/1589, shall be requested to be repaid immediately.

Agreement for direct COVID-19 loan borrowers

General terms and conditions;
Annex No 2 to the agreement.