Financial support for business start ups
Micro enterprise is a dominating form of business in Lithuania. According to the Lithuanian Republic legislation, micro enterprise is the one which has less than 10 employees and its annual income does not exceed 7 million litas and/or its assets have value of less than 5 million litas.
Besides the possibilities to borrow from the private financial institutions, micro enterprises are able to take the microcredit from the funds financed by the European Union structural funds.
Natural persons, small enterprises that operate no longer than 1 year, also social businesses can apply for preferential microcredit provided by the Entrepreneurship Encouragement Fund. The fund supports the establishment of new business and the expansion of the activity of entrepreneur operating no longer than one year aiming to increase business competitiveness and effectiveness. The priority is given to unemployed people registered at labor exchange office, disabled persons, youth to 29 years old and persons who are 50 years or older.
Claimants could get a credit of the maximum 86000 litas. The interest rate of the microcredit consists of 3-month VILIBOR plus 0.1% (which can not be less than 2% and more than 6% of yearly interest), plus the margin of credit union (stable part of the interest which can not exceed 3.49%). There is no fee for microcredit administration. The deadline for the microcredit redemption is the 31st of December, 2015.
The “INVEGA” fund established by the trilateral agreement and supported by the European structural funds provides the assurance for 80% of the microcredit. A person who took the microcredit can refer to the “INVEGA” fund for the compensation of 50% of the interest.
The list of credit unions providing loans financed by the Entrepreneurship Encouragement Fund could be found following this link:
http://www.lku.lt/uploads/KU_kontaktai_verslumo_skatinimo_projektas.pdf
More information please follow the links:
http://www.esparamaverslui.lt/informacija/mazi-kreditai-smulkiajam-ir-vidutiniam-verslui
http://www.mvi.lt/paskelbti-kvietimai-es-paramai-gauti
http://www.invega.lt