Investicijų ir Verslo Garantijos, UAB (Investment and Business Guarantees (INVEGA) is a financial institution established by the Government of the Republic of Lithuania and controlled by the Ministry of Economy that provides financial support to SMEs, and facilitates their access to the sources of financing in Lithuania using financial engineering tools. INVEGA helps to solve problem of collateral by providing credit institutions with guarantees of repayment of the first credit instalment of up to 80% of the principal credit amount. Repayment of the remaining credit amount to the Bank is guaranteed through collateral of mortgaged property acquired from loan funds.
INVEGA also provides leasing guarantees for SMBs that are going to buy a new (unused) manufacturing equipment and/or new (unused) machinery by way of financial leasing. This is a way to guarantee the payment of part of the leasing amount in case of bankruptcy of the lessee. When the lessee repays part of the leasing amount, the amount of INVEGA guarantee is reduced accordingly.
Receivers of the guarantee shall be small and medium-sized business entities (SMEs) as defined in the Law on Medium-sized Business Development of the Republic of Lithuania.
Terms and conditions of credit guarantees:
• Amount of the guarantee can be up to 80% of the credit amount;
• Maximum guarantee amount:
– Eur 579 240,04 (LTL 2 million), if a business entity is operating for less than 3 years;
– Eur 1 448 100,09 (LTL 5 million), if a business entity is operating for 3 years and longer;
• Guarantees can be issued for:
– credits intended at financing of investment projects;
– credits for supplementing the working capital;
• Guarantee fee amounts to 1–1,5 % of guarantee amount.
Terms and conditions of leazing:
The amount of leasing guarantee should not exceed 70 % of the difference of the leased property price and the initial payment; moreover, it should not exceed 60% of the leased property price.
The amount of leasing guarantee may not exceed EUR 1,448,100; in cases, where the lessee has operated for less than 3 years on the date of submission of the application to INVEGA to issue a guarantee, the leasing guarantee may not exceed EUR 579,240.
The leasing guarantee may be issued, when the leased property meets all of the following requirements:
• Leased property has to be manufacturing equipment (machines, machinery, instruments, devices, tools, technological lines as well as agricultural and forestry machinery, except for components, passenger and cargo vehicles, trailers, semi-trailers, vessels, railway and tram locomotives, rolling stock, aircraft) and/or installations;
• Leased property has to be new, i.e. the date of manufacturing is within 24 months before the entry into the leasing contract; and unused, i.e. leased property has not been used for its intended purpose by other economic operators.
• Leased property has to be intended for manufacturing, service or construction activities.
For the leased property, the lessee must pay the initial payment of at least 10 % of the leased property price.
What types of credits/leasing may not be covered by the guarantee?
• Credits granted for projects related with manufacturing and primary processing of agricultural products, forestry, fishery, and aquaculture;
• credits granted for projects of cargo transportation enterprises or aimed at the acquisition of cargo transportation vehicles;
• credits, the funds of which can also be used for personal (non-business) purposes;
• leasing, where the leased property is to be used in the household, for rent, wholesale and retail trade activities, transport services, real estate rental, recreation, sports and health (except for medical) activities;
• leasing, where the leased property is an integral part of residential premises and/or non-residential buildings or other real estate;
• INVEGA does not extend its guarantees to vehicle leasing (including passenger cars).
Terms of Interest Compensation
SMB entities may receive compensation of 95 or 70 percent for the interest paid, when credit/leasing contract was signed on/after 01-01-2014 and:
1. The credit/leasing contract is covered by INVEGA guarantee;
2. The credit/leasing contract is not covered by INVEGA guarantee, but the credit/leasing funds were used to finance high or medium-high technology investment; to purchase production equipment, facilities, machinery, technology, hardware, licenses, software and/or special purpose equipment;
3. The credit for investment or the credit /line of credit supplementing the working capital was granted by the Open Credit Fund.
- 70 percent of the interest paid, but not more than 7 percent of the annual interest, when the place of registration of the project developer specified in the Register of Legal Entities is within the area of Vilnius city, Kaunas city or Klaipėda city municipality (hereinafter referred to as the metropolitan area);
- 95 percent of the interest paid, but not more than 9.5 percent of the annual interest, when the place of registration of the project developer specified in the Register of Legal Entities is within the area of municipalities other than Vilnius city, Kaunas city or Klaipėda city municipality (hereinafter referred to as the regional area);
- 95 percent of the interest paid, but not more than 9.5 percent of the annual interest, when before 6 August 2014 the project developer had valid transaction(s) with companies established in the Russian Federation regarding the sale of products and/or raw materials, which according to the legislation adopted by the Russian Federation are included in the list of products and raw materials banned for imports to the Russian Federation (the assessment is made on the basis of approved copies of documents evidencing the transaction of sale of products and raw materials banned for imports to the Russian Federation and their translation into the Lithuanian language; the fact of existence of the company established in the Russian Federation is determined on the basis of publicly available data of the Register of Legal Entities of the Russian Federation. The fact of the products and raw materials being included in the list of products and raw materials banned for imports is determined on the basis of publicly announced legal act of the authorized institution of the Russian Federation providing for the relevant restrictions (bans); the document evidencing the existence of a valid transaction that was in force before 6 August 2014 is a purchase and sale agreement, invoice, export declaration or any other document evidencing the relevant commercial relations and agreements).
The interest rate used as a basis to calculate the maximum amount of partial interest compensation is the annual interest rate provided for in the financing agreement applied on the date of signing the financing agreement; if the interest rate exceeds 10 percent of the annual interest, partial interest compensation is calculated by taking the annual interest rate of 10 percent.
Interest compensations will be paid until 30 September 2015.
The bank will be accepting requests for partial interest compensation until 31 August 2015.
In order to receive partial interest compensation, the amount of credit/leasing may not exceed EUR 724,050 (LTL 2.5 million).
If there are several credit/leasing contracts covered by the guarantee, partial interest compensation shall be paid only if the initial value of these credit/leasing contracts does not exceed EUR 724,050 (LTL 2.5 million). Otherwise, interest on the last credit/leasing contract shall not be compensated.
More information about INVEGA interest compensation is available here.