Rental compensations to businesses begin

Date

2020 05 08

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A tool for businesses initiated by the Ministry of the Economy and Innovation is starting, which is designed to cover a partial compensation of rentals for companies most affected by COVID-19. EUR 100 million will be allocated from the state budget to subsidise the rentals.

‘Businesses whose activities were or remain banned during the quarantine may already apply to INVEGA for a partial compensation of rentals. A 50 % compensation will be granted if the real estate manager reduced the rent to the tenant by at least 30 % after the date of declaring the quarantine. Discounts granted by the real estate manager and state subsidy aid should reduce the costs incurred by business for renting up to 80 percent,’ said Minister of Energy, Acting Minister of the Economy and Innovation Žygimantas Vaičiūnas.

Enterprises whose annual income in 2019 did not exceed EUR 50 million or the book value of assets did not exceed EUR 43 million on 31 December 2019 and entrepreneurs whose activities were/are banned by the Government’s resolution on the declaration of quarantine may apply for rent subsidies. The subsidies will be paid during the quarantine period and for two months after it ends.

In order to receive funding, the applicant must fill in an application on INVEGA’s website www.invega.lt, where the rental data is certified by the lessor. With the application, the applicant is required to submit data about invoices for the rental services provided in February 2020 and the months during which the discount was granted before the date of application and indicate the details of the main activity and other data. The applicant who received the partial rental compensation from INVEGA must pay the rent to the lessor no later than within 5 working days (in case he has not paid it).

The contract for the rent of premises must be signed not later than 15 March 2020, at the time of submission of the application it must be valid and registered at the State Enterprise Centre of Registers.

The description of conditions of the ‘Partial compensation of rentals for companies most affected by COVID-19’ measure is available at www.invega.lt.