40 million euros loans for Lithuanian SMEs thanks to the Invest EU programme
The European Commission has signed an agreement to guarantee a 40 million euros loan to Lithuanian businesses via the local bank Mano Bankas. The funding will foster innovative and sustainability projects, which are able to foster jobs and growth.
What is the Invest EU programme?
InvestEU is a European Union's Programme launched during the Junker's Commission that aims to stimulate a total of 372 billion euros of additional public and private investments in projects for the period 2021-2027. Key European priorities such as the European Green Deal, the digital transition and support for SMEs will be addressed. The largest implementing partner for InvestEU is the European Investments Bank Group, which consists of the homonymous bank and the European Investment Fund (EIF).
In particular, the support to SMEs includes:
- Access to and availability of finance for innovative companies and those operating in the cultural and creative sectors, as well as for small mid-cap companies;
- Supporting businesses with difficulties of access to finance: start-ups, younger and smaller companies, businesses with a perceived higher risk and lacking (sufficient) collateral, and innovative ones.
Investors and project promoters have the possibility to access the Invest EU portal, a website where they can find an easily-accessible and user-friendly database of investment opportunities available within the EU.
Moreover, the Advisory Hub offers assistance to project entities helping them with the preparation, development, structuring and implementation of investments. Support services can be given to:
- Private project promoters;
- Public promoters (including Member States central and local authorities);
- Financial and other intermediaries implementing financing and investment operations for the benefit of entities that face difficulties in obtaining access to finance.
The role of the European Investment Fund
The European Investment Fund (EIF) has the central mission is to support Europe's small and medium-sized businesses (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments tailored for SMEs.
“The guarantees and loans with a sustainability focus are particularly important for the market right now as the bank can begin financing renewable energy projects more confidently and earlier for the development and construction of new power plants as well as modernisation work, capacity increases and the like at existing plants”, said Aurimas Putna, a member of the board at Mano Bankas, the Lithuanian partner bank.