1. Financial engineering measure „Entrepreneurship Promotion” for start-ups in Lithuania
24 September, 2013
Vilnius

2. INVEGA – Investment and Business Guarantees, Ltd.
Established by the Governance, registered on 29 November 2001, supervised by Ministry of Economy
State owned 100%, private limited liability company
Share capital – EUR 8.69 million
Liabilities under individual guarantees are calculated
into State Debt of LT
40 employees
Since 2001 issuance of individual guarantees and partial interest compensation
Since administration of micro-crediting programmes
Since 2009 administration of Global Grant
Since 2009 manager of HFs (ERDF + ESF) and separate financial engineering instrument „Guarantee Fund“
Since investor in Baltic Innovation Fund of Funds (20%)

3. Financial Instruments funded by
National budget
Financial Instrument funded by ESF
Financial Instruments funded by
ERDF and reflows
Entrepreneurship Promotion Fund EUR 14.5m
INVEGA fund (HF)
EUR 199m
Micro Credits
for SMEs
EUR 8m
Small Credits
EUR 6m
Entrepreneurship Promotion
EUR 14.5m
Guarantee Fund - Individual guarantees
EUR 37.4m
Small Credits_2
EUR 27.5m
Open Credits Fund
EUR 43.4m
FRSP
EUR 110m
FLPG
EUR 11.3m
CID
EUR 11.6m
BIF
EUR 20m
Global Grant for the First Job
EUR 9.3 m
Compensation of interest
EUR 21.4 m
Individual guarantees

4. Entrepreneurship Promotion Fund
Holding Fund with measure – “Entrepreneurship Promotion”:
active from December 2009
funds to be returned to HF until 31 Dec 2018
loans (microcredits) granted until 30 Jun 2014
Budget: EUR 14.5m
Measure: combination of microcredits and trainings/consultation
Financial Intermediary: Consortium of 57 credit unions, represented by Lithuanian Central Credit Union
State aid scheme: de minimis (restricted sectors: under de minimis rules
Responsible ministry: Ministry of Social Security and Labour

5. Entrepreneurship Promotion Fund
Main terms of microcredits:
For start-up SMEs (legal entities and individuals) – operating < 1 year
Up to LTL 86k (EUR 25k) for one loan per SME
Up to 90% financed by ESF and > 10% by credit union
Credit union’s interest rate < 3.49%
Interest rate for SMEs 5,49-9,49 %
+ Compensation of 95% of interest paid (by ERDF)
+ INVEGA guarantees up to 80% on microcredits

6. Priority Groups Unemployed Disabled
Young people (under 29 years of age)
People over 50 years of age

7. Conducted trainings & Consultations
Preparation of Business Plan
Accounting Management and Tax Basics
Business and Labor Law Basics
Business Management Basics
Marketing Basics
Human Resources Management in Business Basics

8. Implementation of Entrepreneurship Promotion Fund
Activities
Date
Signing of the trilateral agreement between Ministry of Social Security and Labour, Ministry of Finance and INVEGA
30 Dec 2009
Launching International Public procurement
31 March 2010
Signing of agreement between INVEGA and Consortium of Credit Unions
30 July 2010
First trainings started
20 Sept 2010
First loan issued
8 Nov 2010

9. Results achieved Target Results as of 31-08-2013 Implementation, %
Number of individuals attended the trainings
4500
3643
81%
Number of loans disbursed
1200
551
46%
Amount of loans disbursed (European Social Fund), EUR m
12.2 9
74%
Number of jobs created
1000
1091*
109%

10. Granted loans Services: Food services Advertising Accommodation
Financial Accounting
Manufacturing:
Food Production
Wood Preparation
Furniture production
Granule production

11. Communication

12. Communication

13. Where we are now...

14. Best practice
Partial interest rate compensation and INVEGA’s guarantees mitigate lending (borrowing) risk and encourage entrepreneurs to start their own business or become a self-employed
Composition of Financial Intermediary covers entire country and ensures better access to microcredits for start-ups

15. Future
Provision of training, consulting and assistance services for start-up companies in order to help in preparation and implementation of their business plans
Combination with partial interest rate compensation and guarantees
Orientation towards socially excluded groups

16. Contacts UAB „Investicijų ir verslo garantijos“ (INVEGA)
(Investment and Business Guarantees, Ltd.)
Konstitucijos pr. 7 (16th floor), Vilnius
Lithuania
Tel , faks
to: