Enterprises with up to nine employees will be able to receive subsidies

Date

2020 05 11

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The Government provides a possibility to reduce financial losses for Lithuanian micro-enterprises affected by coronovirus (COVID-19). A new ‘Subsidies for Micro-Enterprises’ instrument is being launched to help these enterprises. Under this instrument, enterprises with between 1 and 9 employees will be eligible for subsidies that can be used for the working capital. EUR 100 million from the State budget has been allocated for the implementation of this instrument. This was approved at the Government meeting  today.

‘Lithuanian micro-enterprises, which temporarily discontinued or even ceased their activities during the quarantine period, were particularly affected by the consequences caused by coronavirus. In order to provide them with a helping hand, we have set up a new financial ‘Subsidies for Micro-Enterprises’ instrument. This instrument will help Lithuanian micro-enterprises to overcome the negative consequences caused by coronavirus and will help ensure their liquidity. Under this instrument  subsidies for the working capital will be offered,’ says Minister of Energy, Acting Minister of the Economy and Innovation Žygimantas Vaičiūnas.

The subsidy will be calculated by the State Tax Inspectorate (VMI) on the basis of the personal income tax (GPM) paid by the applicant in 2019. If the applicant paid the GPM of up to EUR 1 thousand in 2019, a minimum grant of EUR 500 may be granted. When the GPM amount paid by the applicant in 2019 was between EUR 1 thousand and 2 thousand, the amount of the subsidy makes EUR 1 thousand. If the applicant’s payment of the GPM in 2019 is to more than EUR 2 thousand, the amount of the subsidy makes half of the GPM paid by the applicant in 2019.

The total amount of aid granted to one enterprise (including also other instruments) must not exceed EUR 200 thousand over the recent three fiscal years. The aggregate amount for an enterprise engaged in road freight transport activities for hire or reward may not exceed EUR 100 thousand, EUR 20 thousand for one enterprise in the agricultural sector and EUR 30 thousand for one enterprise in the fisheries and aquaculture sector.

The financing provided under the ‘Subsidies for Micro-Enterprises’ instrument takes the form of a non-repayable subsidy. The selection of applications for subsidy under this instrument will be carried out on a continuous basis until the total amount under this instrument is allocated.

The implementation of the instrument is administered by the Ministry of the Economy and Innovation and the Ministry of Finance; the instrument is implemented by the STI, the public enterprise Lithuanian Business Support Agency and the Competition Council. Payments will be carried out by the National Centre of General Functions subordinate to the Ministry of Finance.