Starting from 1 February, government support of EUR 346 million has reached businesses through measures administered by the national development agency Investicijų ir Verslo Garantijos (INVEGA). More than one third of this amount was distributed in July. Most funds have reached businesses through loans to businesses most affected by COVID-19 provided by financial institutions, State-funded compensations of rent and interest and Portfolio Guarantees for Loans 2.
“Most funds have reached businesses to compensate for rent and in the form of loans to businesses most affected by COVID-19. It should be noted that the time required for evaluating applications has become shorter. We have passed more than 3,000 positive decisions in July alone. The greatest number of applications was approved for loans to businesses most affected by COVID-19; applications for partial compensation of rent are now also evaluated prompter: of the 1,928 approved applications, more than 1,000 positive decisions were passed in July. These results were achieved thanks to both the established processes and the new experience acquired on a daily basis by financial institutions and INVEGA. And we seek to improve further,” said Kęstutis Motiejūnas, director general at INVEGA.
The prompter evaluation of applications has positively affected the provision of compensations for rent. A considerable leap was recorded in July: positive decisions to provide subsidies worth EUR 10 million were passed in the course of the month, which account for two thirds of the total funds distributed under this measure.
According to Mr. Motiejūnas, they continue to look for ways to further simplify the application submission and evaluation process and make it clearer and more convenient to businesses, to save time costs and resources required for administering the measure.
EUR 20 million were allocated in July through the Portfolio Guarantees for Loans 2 provided using State funds. Thanks to these guarantees, companies have more favourable conditions for receiving new revolving loans to ensure company liquidity or restructure their loans. A total of EUR 42.67 million was provided under this measure.
Approximately EUR 3 million was used in July for interest compensations, and a total of EUR 13.26 million was allocated under this measure. INVEGA would like to remind that companies and entrepreneurs may avail of either 100% compensations provided in case payment of loans or lease is postponed for up to 6 months during the emergency situation or long-term compensations of 95% of interest on loans intended for business development.
In July, the financial institutions that had signed agreements with INVEGA have used up the total loan budget for businesses most affected by COVID-19. A total of 3,462 loans worth EUR 200 million have been provided since the measure was launched.
Head of INVEGA has also noted that the package of State support measures administered by INVEGA had changed in July.
“In July, following consideration of business needs, we completed the provision of loans for payable invoices (ASAP); on 31 July, we also completed the provision of loans to businesses most affected by COVID-19. In mid-July, the package of measures administered by INVEGA was supplemented with target support for the tourism industry: loans for travel services providers and providers of accommodation and public catering services and guarantees to secure performance by travel services providers were introduced,” said Mr. Motiejūnas.
INVEGA would like to remind that a business may evaluate its needs and avail of several support measures that is deems most acceptable. It is important to prioritise in order to effectively avail of the financing opportunities and obtain the maximum amount of State-provided support for which an individual company is eligible.