Better conditions for businesses to access more than 400 million euros in funding
The Ministry of Economy and Innovation, in collaboration with ILTE, has reviewed the terms and conditions of financial instruments for businesses – funded by more than 400 million euros in European Union (EU) funds – and is preparing amendments to redirect more funds toward instruments that are being used more actively. This will provide businesses with more opportunities to obtain preferential loans and expand their operations.
“Funds earmarked for business must reach companies as quickly as possible and be converted into real investments. Therefore, we have reviewed the financial instruments and will propose reallocating 77 million euros in European Union funds so that more companies can benefit from state financial assistance. We are increasing the portion of the grant allocated to loan redemption, expanding financing options, and reducing excessive requirements. We want as many Lithuanian companies as possible to be able to invest in expansion and new technologies,” says Edvinas Grikšas, Minister of Economy and Innovation.
The reallocation of funds will cover three ILTE direct loan programs – “Startuok,” “Pokytis,” and “Perspektyva.” After reviewing their results, it is proposed to redirect a portion of the funds from less popular activities to those that businesses utilize more actively. The most significant changes are expected in the “Startuok” and “Pokytis” loan programs, which aim to encourage companies to launch new activities or strengthen and expand existing ones, as well as to promote productivity growth, technological progress, and digitalization.
One of the most important planned changes is larger grants, which would allow a portion of the loan amount to be written off, thereby reducing the financial burden on companies.
Under the “Startuok” program, the subsidy for investment loans would increase from 20 to 30 percent. In addition, companies in the Capital Region would also be eligible to participate in this program. “Startuok” is designed for small and medium-sized businesses seeking to start or expand their operations.
Under the “Pokytis” measure, the subsidy would increase from 10 to 30 percent. The procedure for awarding subsidies would also be simplified – companies could receive them upon completing a project, without having to wait until the set targets are met. This measure is intended for industrial enterprises and micro, small, and medium-sized enterprises (SMEs) investing in digitalization, new technologies, and the modernization of their operations. It covers transformation activities in the Central and Western regions, as well as digitization and the creation of short value chains in the Capital Region and the Central and Western regions of Lithuania.
There are plans to expand funding opportunities as well. Under the “Pokytis” measure, funding would be available not only for the automation of production but also for the automation of other business processes and the implementation of digital technologies. In the Capital Region, funding for digitization would become available to a wider range of companies, as the requirement for high added value would be eliminated. In addition, companies in the capital region would be given the opportunity to obtain funding under the “Pokytis” measure to implement technologies and modernize business processes, thereby contributing to the creation of short value chains.
The new funding conditions are scheduled to take effect on November 6, following coordination of the changes to the financial instruments with the relevant institutions. It is important to note that the new conditions will apply to applications submitted by companies after the changes take effect.