From Monday – a new “Billion for business”: will provide up to 250 million Euro loans

“Finally, we are starting with a financial instrument of one billion euros, more precisely, 850 million euros will be allocated to this instrument in Lithuania. Eur. Financial loans are intended for investment projects, industries where Lithuania has achievements, but still needs help”, said Aušrinė Armonaitė, Minister of Economy and Innovation, while presenting the “Billion for Business” measure on Thursday.

According to the measure, the business will be able to receive up to 150 million. EUR Invegos directly provided or subordinated loans, and the financing amount of syndicated loans will be able to reach up to EUR 250 million. Eur. Micro, small and medium (SME) and large companies will be able to apply for loans. The maximum duration of the loans is 15 years with the possibility of extending the term up to 20 years. Loans will be provided on market terms.

Loan agreements – until 2026.

The facility is administered by Invega, applications for loans will be available from April 29, and loan agreements can be signed until 2026. June 30

According to Inga Beiliūnienė, a member of Invego’s board and head of business development, it is planned that the acceptance of applications will start on Monday afternoon, “Invego’s” specialists are ready to advise on how to prepare applications.

Loans – up to 150 million EUR per company and up to 250 million. Eur together with other banks or private investors – will be provided under market conditions.

“Interest will be the market – what does this mean?” This means that preferential loans will not be available in this case. Credit risk, ability to repay, availability of collateral and collateral for the loan, etc. will be assessed. There will be no so-called state aid, no preferential interest, they will be normal, the market”, says I. Beiliūnienė.

It is estimated that the total impact of the loans will be greater than the budget of the measure, as the loan funds will return to “Invegas” and can be used for new projects.

“We start with 1 billion EUR, but the accumulated interest and returning loan payments will be reinvested again, so, we calculate, the total effect should reach up to EUR 2 billion. Eur. It is also very important that companies operating in the defense and security sector will be able to use the funds of this measure, which remains one of the priorities in the coming years,” says I. Beiliūnienė.

Innovation is necessary

Funding will be provided for projects aimed at investing in environmentally friendly technologies, increasing circularity, decarbonization, energy efficiency, implementation of low-waste, advanced, innovative and digital technologies, as well as the development of production capacities for high value-added products and the defense and security industry.

“This is the most important tool of the year, for which we have worked and waited for a long time. In a recession, when all investment stops and we see the industrial sector stagnate, it creates an opportunity for industry and business as a whole to get money for much-needed innovation, to get funds to invest in more advanced, innovative, high-value-added jobs. These innovations are now undoubtedly necessary for reorienting our production to new needs, to the global agenda of innovative industry,” Vidmantas Janulevičius, president of the Confederation of Lithuanian Industrialists (LPK), is quoted in the report.

Requirements for applicants

According to A. Armonaitė, Minister of Economy and Innovation, in 2023 the total package of aid measures provided by the Ministry of Economy and Innovation amounted to almost 2 billion. Eur. They financed measures for growth, transformation, green economy.

“However, it is clear that large capital projects were often left behind. Thus, one billion euros will precisely open up opportunities to create and expand large-scale projects, and at the same time ensure investments in sustainable Lithuanian business and innovations”, A. Armonaitė points out.

Other criteria are also provided for companies wishing to take advantage of the measure, including the absence of relations with states hostile to Lithuania, ensuring that the projects do not cause significant damage to the environment, as well as that the project involves suppliers and contractors who are not controlled by third-party entities, but by their management bodies. operates in the EU.

Preliminary list of documents to be submitted by companies seeking funding:

• The application, which is completed and submitted online, after connecting to the system.
• Personal documents identifying the head of the company and the authorized person.
• Relevant company and management structure, ie consistent information about all levels of the company and management structure, as well as all natural and legal persons at the levels of ownership and management structure of the company.
• A free-form document specifying the relationships between the business entity and its related companies.
• Completed and signed assessment form (declaration) of compliance with the principle of not causing significant harm.
• A set of financial statements for the interim last quarter of the current financial year.
• Business plan.
• The decision of the management body of the business entity regarding the resolution to allocate the necessary amount for the implementation of the project.
• Detailing of activity (financial) data.
• Three certificates of refusal to finance the business entity from different financial institutions (in the case of direct loans).
• A letter of intent from the private financier to participate in the project, if the private financier intends to grant a loan.
• Other documents, depending on the specifics of the project.