Nine-month results: INVEGA provided businesses with over EUR 300 million of state funding
During the three quarters of this year, the national development agency Investment and Business Guarantees INVEGA provided EUR 301.27 million-worth of funding to 5435 Lithuanian businesses. Unlike in 2020, the largest share (87%) of the funding comprised INVEGA’s long-term non-covid instruments designed to support businesses and ensure funding in those cases when it cannot be received from the participants of the financing market.
During the three quarters of this year, INVEGA’s covid-related instruments were used by 1154 businesses of the country, for which INVEGA secured a total funding of EUR 39 million.
“We continue to help various-sized enterprises to ensure smooth operations, expand business, and have easier time in overcoming financial challenges created by the pandemic. Apart from our long-term funding instruments, we still provide covid-related instruments as well: during the three quarters of this year, INVEGA’s covid-related instruments were used by 1154 businesses of the country, for which INVEGA secured a total funding of EUR 39 million,” said Kęstutis Motiejūnas, Chief Executive Officer of INVEGA.
48% of INVEGA’s funding – almost EUR 144 million – was granted in the form of guarantees. INVEGA’s guarantees, serving as part of a security required by financiers, were used by 843 businesses in the country, of which 334 companies used INVEGA individual guarantees, securing over EUR 47 million-worth of funding. Portfolio guarantees helped out 509 businesses and in total were worth EUR 96 million. Since the start of the year, export credit guarantees have been used by 12 companies, totalling EUR 1.3 million.
During the nine months of the year, the volume of state lending to businesses in the form of loans exceeded EUR 113 million. Year to date, a total of 2469 businesses have used the loan funding support through the instruments Alternatyva, Avietė, Risk-Shared Loans, Open Credit Fund 2, Entrepreneurship Promotion Fund 2014–2020 financed by the European Social Fund, Loans for Providers of Accommodation and Catering Services and Direct COVID-19 Loans. The Alternatyva loans, provided through alternative financiers, remained the most popular. Having provided the alternative lending market with “cheaper” money, INVEGA helped out 860 businesses that received over EUR 50 million and are able to more easily cover working-capital shortages and ensure the stability and expansion of their business.
Non-repayable aid (subsidies) were used by 2003 businesses which have received EUR 23.06 million in the year to date. Through venture capital investments, 120 innovative enterprises and start-ups attracted over EUR 21 million this year.
In the third quarter, INVEGA also started the implementation of new financial instruments. To make borrowing more accessible to young companies, INVEGA announced the start of the Startuok instrument – it is intended for all businesses that have operated for up to 3 years as well as companies implementing special projects to make social impact. To make funding more accessible to companies that lack a viable security, INVEGA reached an agreement with the European Investment Fund on guaranteeing such loans through the European Guarantee Fund. In the third quarter, INVEGA made available subsidies for rent and related costs to self-employed individuals through the instrument Subsidies to Self-Employed Persons Affected by COVID-19. The expansion of the venture-capital market also continued – INVEGA announced a tender for hiring fund managers for the venture-capital instrument Accelerator 2. These funds will invest in establishing and promising small and very small enterprises in Lithuania and supplement the currently active accelerator funds whose investment period is approaching the end date. INVEGA entered the capital market: as from Q3 of this year, it began subsidising the costs of listing company shares or bonds through the instrument Promotion of Listing of Securities on Securities Exchange.
Investment and Business Guarantees INVEGA is a national development agency founded by the Lithuanian Government with the aim to help Lithuanian businesses to receive the funding they need. INVEGA effectively allocates taxpayers’ money, evaluates risk in a competent manner, and focuses on projects that contribute to the well-being of the entire country: the guarantees that the agency provides help to solve the issue of security that is insufficient or unattractive to financial institutions, while its administered and directly granted support loans as well as subsidy and venture-capital instruments facilitate the funding process.