I. Small and medium-sized business (hereinafter referred to as the SMB) crediting instruments aimed to finance investment projects and circulating funds (credit institutions were given extra resources to be lent to the SMB entities):

Small credit granting (up to LTL 175 thousand; up to LTL 350 thousand): LTL 111.6 million has been earmarked for individual measures out of which banks have already issued 882 loans for the amount of LTL 162,377 million. Under the measure “Small loan issue 1” the loans of the amount of up to LTL 175 thousand have been aimed for investments and (or ) to finance the circulating capital. Following the conditions stipulated under the agreement with a bank, the loan interest rate may fluctuate from 4.25 to 4.59%. Small loans may be issued by AB Ūkio bankas, AB Šiaulių bankas and UAB Medicinos bankas (Medicine bank). Under the measure “Small loan issue 2” loans (up to LTL 350 thousand) are aimed for the SMB development. The average interest rate fluctuates between 3.45 – 5.2%. The loan recipient who implements the project outside the municipalities of Vilnius, Kaunas or Klaipėda may lend under more favourable conditions (i.e., with a lower interest rate). Such loans may be issued by AB Ūkio bankas, AB Šiaulių bankas, UAB Medicinos bankas and AB bankas Citadelė.

Open credit fund (hereinafter referred to as the OCF) (loans up to LTL 1.5 million + 25% from the bank funds):LTL 100 million from the EU structural funds has been earmarked for this measure under which open credit line agreements are concluded with seven banks that, upon adopting the decision to grant credits which meet the set requirements, will apply to INVEGA for receiving the OCF funding (not exceeding 75% of the credit amount) to finance the SMB entities. The maximum amount of such a loan from the OCF may be LTL 1.5 million, the banks must contribute to the implementation of this measure with at least 25% of their own funds. In 2009, agreements were signed with UAB Medicinos bankas, AB bankas Finasta, AB Ūkio bankas, AB bankas Citadelė, AB Šiaulių bankas, AB DnB NORD bankas and AB bankas Snoras which the businesses entities may apply to concerning the abovesaid loan granting. The total amount of the credits issues, including also the bank funds, makes LTL 89.951 million, out of which LTL 67.463 come from the OCF funds.

 
II. Instruments which reduce the risk of the credit institutions and thus encourage 
credit issue to the SMB entities: 
 State guarantees for the SMB loans: LTL 129 million of the EU structural funds has been 
earmarked to cover possible disbursements; the guarantee amount for the circulating SMB loans 
has been increased from 50% to 80%. At present, 1205 guarantees have been issued for the amount 
of LTL 305.322 million; the total amount of the guaranteed loans granted to the SMB entities makes 
LTL 413.227 million. 
 Partial compensation of interest: LTL 104 million of the EU structural support funds have 
been earmarked and 2011 SMB entities have made use of the interest compensation for the amount 
of LTL 27.926 million since 2009. 

III. Risk capital instruments

For the first time, Government funding will be made available to encourage risk capital investments to companies.

On 21 January 2010, the EIF signed an agreement with the selected jointly investing fund manager UAB Mes invest. The value under the agreement constitutes EUR 9.45 million; the joint investments to the SMB entities are expected to make about EUR 16.8 million. The Business Angels Fund I together with the business angels (private investors) will invest in small and medium-sized enterprises of Lithuania (LTL 1.38 million (EUR 0.4 million) for one enterprise). The investors will share their know-how and experience and help enterprises to improve their business management skills and successfully behave in the long-term perspective. More information on the KŪB “Verslo angelų fondas I” (Business Angels Fund I) activities is available on the website www.versloangelai.eu. “Verslo angelų fondas I“ has already invested in five companies.

On 23 April 2010, under the Risk Capital Funds measure an agreement with BaltCap was concluded, and on 1 June 2010 – an agreement with LitCapital Asset Management. Based on the abovesaid agreements, two risk capital funds were established. Two funds amounting to LTL 138 million (EUR 40 million) have been earmarked LTL 96 million (EUR 28 million). It has been set that the investment amount invested by the Fund in one targeted enterprise may reach up to EUR 3 million (LTL 0.35 million) and EUR 1.5 million (LTL 5.18 million) within any period of twelve months. On 11 April 2011, LitCapital Asset Management signed an agreement for an LTL 3 million investment with UAB Lignoterma which is a bioenergy company of the Lithuanian origin.

EU Structural assistance to Lithuania