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Representatives of the small and medium-sized enterprises (SME) henceforth will be able to get a business loan with UAB „Investicijų ir verslo garantijos“ (INVEGA) guarantee in the BIGBANK bank. In order to create the most favorable conditions for small and medium-sized business development INVEGA and the branch of BIGBANK AS signed a cooperation agreement for the provision of guarantees for the loans taken by SME entities.

„The fact that more and more credit institutions expressed their willingness to work with INVEGA, not only enhances the overall role of INVEGA as the guarantee institution on the business market, but also offers more options for small and medium-sized businesses, wishing to expand or start their business, but facing the money problem“, – says Zita Gurauskienė, INVEGA Director-general.

Loans with up to 80 percent of state guarantee will be provided for implementation of investment projects or for supplement of working capital needed for business development. Guaranteed loans will be available to the companies with less than 250 employees.

„The benefit of the business credit with INVEGA guarantee for small and medium-size business – obvious. SME companies requesting the loan from the bank often face a security problem. Credit with INVEGA guarantee will help to solve that problem. In addition, with INVEGA guarantee the part of interest of SME entities can be funded, “– says Rolandas Norvilas, Head of BIGBANK AS branch.

The maximum guarantee amount cannot exceed 5 million LTL. SME entities, who received BIGBANK loan with INVEGA guarantee, can get the refund of interest paid on loan up to 50 percent, but not more than 5 percent of annual interest.
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UAB „Investicijų ir verslo garantijos“(INVEGA) – the guarantee institution founded by the Government of the Republic of Lithuania in 2001 m. and supervised by the Ministry of Economy, which, aside from the provision of loans for the small and medium-sized enterprises, administers the partial compensation of loan interest and the provision of preferential loans financed from the EU Structural Funds and Lithuanian Budget. From the inception (year 2001) until 31st May 2011 INVEGA has already provided 3 094 guarantees for credit institutions for the loans taken by SME entities, total amount of guaranteed loans is close to 1 248,1 million LTL, and the amount of guarantees provided for these loans – 837,5 million LTL. 
BIGBANK AS – one of the largest banks in the Baltic countries, specializing in the market of consumer credits and fixed-term deposits for natural persons, as well as SME-type enterprises leasing. BIGBANK group has 30 customer service offices in the Baltic countries, Finland and Spain. BIGBANK offers term deposits in Germany and Austria as cross-border service.

LitCapital venture capital fund invests in the company UAB „Putokšnis“. The core activity of the company – production of PET packaging in Lithuania and Ukraine. Last year the company’s turnover exceeded 110 million LTL. This investment will allow the company to exploit its production capacity to the maximum. What is more, it is intended to expand production capacity and additionally invest in cogeneration plant for the technological needs of UAB „Putokšnis“.

„We are glad having invested in UAB „Putokšnis“– one of the most advanced industrial companies in Lithuania. Mr. A. Stulpinas managed to create a wonderful, dynamic company that continually seeks to improve technology and is able to adapt quickly to customer’s needs. This is a serious competitive advantage. The last couple of years were difficult for the company, however now we can observe a new business phase, when we will try to use all the good features of the company and employee team. The future of plastic packaging is very promising. Global demand for PET packaging is growing at 6-7 % annually. The range of PET packaging is constantly expanding and at the same time the package becomes acceptable to an increasing range of new products. In addition, PET packaging is completely recyclable and according to recycle rates by far surpasses all other types of packaging. That means it is the “greenest” package, the quality that is very important for our fund, because we aim to invest in environmentally friendly products and technologies,“ – according to Šarūnas Šiugždas, LitCapital fund founder and managing partner.

A. Stulpinas: „The company is glad having received such assessment from LitCapital fund and having managed to attract funds under JEREMIE program. This investment will enable the company to take a step yet this season to increase sales cooperating with existing and potential customers, as well as creating new products, increasing production capacity. Together we hope to achieve the best results in the future. “

Graham Cope, European Investment Fund Region manager: “This latest investment of LitCapital reaffirms the importance of capital investment in Lithuania, and this is done with the support of JEREMIE supervisory fund managed by European Investment Fund. In addition, it also shows that growing companies can attract private capital and thus be able to take advantage of og the improving economic environment.”

Vice Minister of Economy, Daumantas Lapinskas: „Congratulations to LitCapital with another investment, permitting to suggest, that investing activity of state supported venture capital funds is accelerating. It is also important to mention an effective and coordinated activity of LitCapital, bank Ūkio bankas and INVEGA and the Ministry of Economy, which resulted in the combination of investment, loan and guarantee allowing this company to gain new inspiration and firmly continue the development.“

LitCapital is a venture capital fund, founded in 2010 in cooperation with European Investment Fund. LitCapital currently manages 20 million euro size and invests in small and medium-sized (private) companies in Lithuania. The investments are long-term investments in the share capital of private enterprises and seek to create growth and development. Size of one investment – from 2 to 10.4 million litas. Duration of investment – 4-6 years. Later a strategic investor is being searched for such a private enterprise, who purchases the shares of the fund.

UAB „Putokšnis“– leading manufacturer of PET packaging in the Baltic States and Scandinavian region. The company produces up to 40 thousand tons of PET packaging production. 90% of UAB „Putokšnis“ production is being exported to beverage manufacturers to such markets as Germany, Poland, Scandinavian countries etc.

About JEREMIE program. JEREMIE is a financial instrument, a joint initiative of the European Commission (Directorate General for Regional Policy (DG Regio), the European Investment Bank (EIB) and the European Investment Fund (EIF) aimed at increasing opportunities of very small, small and medium-sized companies of EU region to receive the finance. It is aimed to designate a certain amount of funds from regional funds for venture capital and thus to encourage the innovation, as well as to help business grow.

Ministry of  Economy information

Project „Promoting Entrepreneurship“, giving people the opportunity to start their own business, is being implemented by 57 credit unions operating in Lithuania. The project encourages to take part in different entrepreneurship trainings for free and to acquire the fundamental knowledge necessary to establish own business and to get a loan for the start from established for this purpose Entrepreneurship Promotion Fund (EPF).

People from Vilnius (43 percent), Kaunas (17 percent.) and Klaipeda (10 percent) continue to maintain the leading position in the general scale of trained citizens. From all priority groups envisaged by the project the leading position belongs to young people under 29 years, who compose 43 percent of all people who have completed the trainings. Training providers have recently focused on advising potential borrowers on a business idea, business plan or other relevant issues related to obtaining a loan.

According to data of Lithuanian Central Credit Union (LCCU), in the second half of May this year 3,3 thousand people have participated  in at least one business basics trainings or consultations. The total amount of the 69 loans granted by Entrepreneurship Promotion Fund reached more than 3,7 million LTL in the second half of May. The total amount of granted business loans including credit unions funds (10 percent) reached 4,1 million LTL.
Most loans under the project “Promoting Entrepreneurship” were granted by credit union „Vilniaus taupomoji kasa“ – 11, Kaunas credit union – 10 , Akademic credit union (Kaunas) – 9, Officer credit union (Vilnius), „Mėmelio taupomoji kasa“ (Klaipėda) – 4. Preferential business loans were granted as well by other credit unions operatins in different Lithuanian cities: „Jonavos žemė“, „Savas rūpestis“ (Šiauliai), „Vievio taupa“, „Moterų taupa“ (Kaunas), „Giminėlė“ (Kaunas), Skuodo bankelis, Raseinių, Vilniaus district, Kretinga, Kėdainiai district, Kaunas archdiocese, Jūreiviai, Grigiškės, Palanga and other credit unions. Above mentioned credit unions granted 1 – 3 business loans each.

On 30 December 2009 the Ministry of Social Security and Labour (MSSL), Ministry of Finance (MF) and UAB “Investicijų ir verslo garantijos” (INVEGA) signed the trilateral Agreement on the Establishment of the Entrepreneurship Promotion Fund. Loans from EPF are granted by 57 Lithuanian credit unions, the members of LCCU. The funds for Entrepreneurship Promotion Fund are received from administered by MSSL Human Resources Development program engineering instrument “Promoting Entrepreneurship”. It is funded by the European Social Fund.

If you have a business idea and a lack of knowledge and money to implement it, contact your local credit union according to your residence, work or business place. For a further information you can also contact us on free phone 8 800 11 211 or search online www.lku.lt.

General Entrepreneurship Promotion Fund loan granting conditions:
Loans are granted to small and very small companies, operating less than one year, social enterprises and natural persons wishing to start or to develop their business. 
Loans can be designated to finance investments and working capital.
The maximum loan amount – 86 thousand LTL.
Loan interest rates are currently 5,49 percent (interest rate can vary from 5,49 percent to 9,49 percent, depending on the current variable VILIBOR interest part).
Final deadline of loan repayment – 31st December 2015.
Loan appliance and repayment period, as well as schedule, guarantee instruments and other loan granting conditions are determined by the borrower and credit union by mutual agreement, by signing a loan agreement.
Up to 80 percent of loan amount can be assured of INVEGA guarantee.
50 percent of interest paid will be refunded for the entrepreneur or company who has received the loan and INVEGA guarantee.

Lithuanian Central Credit Union Information