Latest Invega News
Sep 17, 2021
It opens up wider funding opportunities for young companies by archyw No Comments The National Development Agency “Investment and Business Guarantees” (INVEGA) is launching a new loan financial instrument “Start-up”, financed by the European Regional Development Fund. This measure is intended for businesses operating under the age of 3 or companies implementing social impact projects operating for up to 5 years. INVEGA will provide up to 3 million LTL for these business projects. euro loans. The Start-up measure is expected to help increase the country’s competitiveness and address societal, social, economic and environmental challenges. “Currently, the lack of financing in the market is especially felt by start-ups, which do not yet have sufficient working capital ratios and credit history required by banks. Therefore, to help young businesses, we have created an instrument under which INVEGA will start providing direct loans. This will enable entrepreneurs to develop and grow much faster, ”says Aušrinė Armonaitė, Minister of Economy and Innovation. Loans under the Start-up measure are intended for small and medium-sized enterprises (SMEs) operating for a maximum of 3 years, and for SME entities implementing social impact projects and operating for a maximum of 5 years. Companies with at least 30% of the share capital will be considered to be companies implementing social impact projects. The number of employees employed will be from socially vulnerable groups or whose social impact during the implementation of projects is at least 30%. the annual income of the business will come from economic activities that solve social problems. For projects with a social impact, the cost of lending (interest) will also be subject to 30%. discount. “We are glad to offer new direct INVEGA loans” Startuok “to businesses operating in our country. INVEGA funds are the funds of all our taxpayers, therefore we strive for their purposeful use to effectively promote the establishment and growth of businesses and the performance of activities that create the well-being of the whole country, ”says Kęstutis Motiejūnas, General Director of INVEGA. The Facility may provide investment or working capital loans to strengthen or expand new or ongoing activities. The number of loans issued to one borrower is not limited. INVEGA will provide investment loans for up to 120 months. and the maximum amount that one applicant can receive will be 3 million. euros. Working capital loans will be provided for up to 36 months. for a maximum period of EUR 200 000 per applicant. In order for this financial instrument to be effective and for the financed businesses to borrow responsibly, it is envisaged that the borrower himself will have to contribute to the financing of the project, if necessary with other private financiers. Private investments in each project financed by INVEGA will have to make up at least 20%, of which at least 10%. the values of the project will have to be the borrower’s own funds. Given the need to avoid duplication with existing public funding instruments, Start-up loans will not be available to finance micro and small enterprises operating for up to 1 year and seeking funding of up to € 25,000. INVEGA will continue to offer soft loans to these applicants under the financial instrument “Entrepreneurship Promotion 2014-2020, financed by the European Social Fund”. Businesses operating for up to 1 year, but wishing to receive more than EUR 25,000 in funding, will be able to apply for a Start-up loan. Businesses wishing to receive a Startuok loan can already submit an application to INVEGA at: https://startuokpaskolos.invega.lt. Loan agreements for financing the Start-up measure can be signed until 2023. June 30. A total of EUR 20 million has been allocated to the financial instrument “Start”. EUR from the Fund “Business Financing Fund financed by the European Regional Development Fund”. It is planned that if the loans are in high demand, the amount of funds allocated to the measure will be increased.