What are the benefits?

Enterprises or entrepreneurs can recover part of the funds for the interest paid on the loan and allocate these funds to other business needs.

What companies are eligible?

Small and medium-sized business (SME) entity: a micro, small or medium-sized enterprise or an entrepreneur (a natural person engaged in economic and commercial activities).

What is the maximum amount?

  • Compensation is provided for up to 95 % of the actually paid amount of interest, but no more than 7 % of annual interest.
  • The maximum period for which interest may be compensated is 36 months.
  • Compensation can be granted within the limits of EUR 200,000 as de minimis aid.

Time limits

The duration of the measure is not defined. Information on changes in the implementation of the measure will be published in a separate notice.

What are the requirements for applicants?

SMEs may not be bankrupt or undergoing restructuring or liquidation.
The SME’s main activity is not:

  • Real estate transactions;
  • Freight road transport and removals where loans are intended to acquire goods transport vehicles;
  • Crop and livestock production, hunting and related services;
  • Forestry and logging;
  • Fishing and aquaculture;
  • Specialised retail trade in arms and ammunition;
  • Gambling and betting activities.

What kind of loan agreements are eligible?

  • Loan or financial lease (leasing) agreement concluded with a financial institution which, at the time of the assessment of the application, has a valid agreement with INVEGA on cooperation in providing compensation of interest (list of financial institutions).
  • The loan agreement which was signed not earlier than on 1 January 2020 and is valid at the time of the application.
  • Overdraft, factoring, letter of credit or bank guarantee are not considered as loans under this measure.
  • In the case of a negotiable loan, it must be granted either from the funds of the instruments administered by INVEGA or with an individual or a portfolio guarantee of INVEGA.
  • If the loan consists of several portions with different purposes, compensation is provided only for interest on the portion of the loan that is intended to finance the eligible expenditure. In such a case, the portions of the loan must be segregated in such a way that it is possible to identify the purpose of the eligible portion of the loan at the time of disbursement of the loan, the repayment schedule of this portion and the interest rates applicable to it.

In what cases interest is not compensated?

  • In the case of loans granted under the measures Loans for payable invoices, Loans to businesses most affected by COVID-19, or Loans to travel and catering service providers.
  • Where a loan is intended for the purchase and/or construction of immovable property, with a view to selling (transferring) to other persons and not for use in its activities.
  • Where the loan is intended for the purchase of non-commercial cars (class M1). This item is not applicable to applicants whose activities are car rental, services provided by a driving school, passenger transport, including taxi, and passenger transportation.
  • In the case of loans intended for the acquisition of shares, bonds or other financial assets of enterprises, payment of the balance of another loan, or payment of dividends or bonuses.
  • Where the loan is intended to grant a new loan to a third party, to cover the liabilities of third parties, with the exception of investments refinanced by the borrower with the loan funds under the measures managed by INVEGA, carried out not earlier than 6 months before the signing of the loan agreement.
  • Where INVEGA had taken a positive decision and had concluded grant agreements on interest compensation according to another specification of the partial interest compensation measure.

How does it work?

In order to benefit from this measure, an application must be submitted to INVEGA through the electronic application system.

  • The application is evaluated within 30 working days from the receipt of the duly submitted documents.
  • After a positive decision, compensation of interest is paid out monthly.
  • Upon the signing of the grant agreement, the borrower does not need to submit any additional documents to INVEGA. Compensation is calculated on the basis of the information received from a financial institution.

Information on adopted decisions can be found in the section Contract /Decisions in the electronic application system.

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Atnaujinta 2021-01-28