Invega is already accepting applications for loan interest repayment holidays

Date

2020 04 03

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From today onwards, small and medium-sized businesses in difficulty with regard to COVID-19 will be able to apply to INVEGA for the compensation of interest on deferred loans or finance lease payments. With the deferral by a financial institution of the payment of the loan or financial lease, the borrowers will have the interest to be paid during the deferral period compensated for 100 %.

‘This measure is targeted at all small and medium-sized enterprises that are facing difficulties. We keep encouraging businesses to actively use this possibility;  the Government will compensate the interest on your deferred loans and you will be able to use your savings for other purposes currently vital for you’, says Žygimantas Vaičiūnas, Minister of Energy, Acting Minister of the Economy and Innovation.

The Government has allocated EUR 23 million to fully compensate for interest to be paid by small and medium-sized businesses in cases where the repayment of loans or financial lease was postponed from 16 March 2020 because of the corona virus pandemic.

Loan compensation during the pandemic is focused on small and medium-sized businesses. As a result, the compensation payment procedure has been revised. For example, in view of a sudden shortage of working capital in the accounts of firms or self-employed entrepreneurs, in order to preserve existing staff and for other purposes, more favourable deadlines have been set for the payment of interest compensation, which means that interest compensation will be paid on a monthly  rather than on a quarterly basis. This will enable entrepreneurs to use for other purposes the full monthly amount they previously had to use for the loan and interest.

Interest on deferred loan and finance lease payments is compensated in the case of investment loans and working capital loans that meet the criteria applied for this instrument. Compensation for loan or lease interest will be granted for enterprises for a maximum period of 6 months, until 31 December 2020.

It should be noted that when submitting an application, the documents must be drawn up and submitted properly, as this will determine how quickly the application will be assessed. When submitting applications, entrepreneurs should check on the INVEGA website which additional documents they need to attach depending on their situation. For example, in the case of a loan guarantee, the ‘one company’ declaration, the statement on the current account, the grant agreement and the business certificate or the individual activity certificate are sufficient. In any case, other documents relating to a specific project activities may also be requested.

Small and medium-sized businesses have to apply directly to INVEGA for interest compensation and complete an application. Instructions on how to do so, as well as detailed information on other tools designed for businesses are available at www.invega.lt.