New financing opportunities for small and medium-sized enterprises
New financing opportunities are possible due to the guarantee provided by the 2014–2020 Programme for the Competitiveness of Enterprises and Small and Medium-sized Enterprises (COSME) and the European Fund for Strategic Investments (EFSI) established according to the Investment Plan for Europe. The objective of the EFSI is to help support financing and the implementation of productive investments in the European Union, as well as to ensure greater access to finance.
On 1 June 2016, the European Investment Fund (EIF) and Swedbank AB in Lithuania, Swedbank AS in Estonia, and Swedbank AS in Latvia (hereinafter collectively referred to as ‘Swedbank’) as well as Swedbank Lizingas UAB in Lithuania, Swedbank Liising AS in Estonia, and Swedbank Līzings SIA in Latvia (hereinafter collectively referred to as ‘Swedbank Leasing’) signed agreements on the basis of which EIF, in accordance with the COSME programme, issued guarantees in favour of Swedbank and Swedbank Leasing thanks to which these companies intend to provide as much as EUR 165 million in financing
(Swedbank: investment loans, working capital loans, lines of credit, overdrafts, guarantees and letters of credit, and Swedbank Leasing: leasing (lease financing)) by 1 June 2019 to small and medium-sized enterprises in Lithuania, Latvia and Estonia. Requirements for recipients of financing under the COSME programme:
The number of employees at the company must not exceed 250;
The annual turnover of the company must not exceed EUR 50 million and/or the value of the total assets listed in the company’s balance sheet must not exceed EUR 43 million;
The maximum amount of financing under the COSME programme is EUR 1.5 million;
Only investments in tangible and/or intangible assets and/or working capital are financed.
Information about potential risks:
Improper fulfilment of financial obligations increases your financing costs and may have a negative impact on your credit history, and if the agreement is terminated due to it being violated by you in essence, enforced recovery of debt may be initiated and you may lose your ownership rights to the pledged property, and in the case of lease, you may lose not only the instalments already paid, but the rights to the property being financed as well.
The bank guarantee is a demand guarantee, and the bank does not investigate the client’s disputes with the beneficiary of the guarantee regarding performance of the obligations secured by the guarantee – the bank pays according to the guarantee upon receiving the first demand of the beneficiary that meets the terms of the guarantee, and the client is obliged to pay the bank the amount paid by the latter without delay.
Payment is made not according to the goods, but according to the documents submitted to the bank corresponding to the terms of the letter of credit, therefore (i) be careful when formulating the requirements applicable to them, and (ii) there is still a risk that the seller may dispatch, for example, the wrong product or a different type of product. The letter of credit is a bank obligation that is decoupled from the corresponding contract of transfer of goods – if changes to such a contract are made, they do not automatically apply to the letter of credit as well, so in order for these amendments to also be valid for the letter of credit, an amendment to the terms of the letter of credit must also be made.
More information about the COSME programme can be found on the
The EIF and Swedbank have signed a cooperation agreement to issue loans under the JEREMIE programme. JEREMIE (Joint European Resources for Micro to Medium Enterprises) is an initiative developed by the European Commission together with the European Investment Bank Group. It promotes the use of financial engineering instruments in an effort to improve access to finance for small and medium-sized enterprises via structural funds interventions. According to the agreement that has been signed, clients can be provided with
investment loans (for investments in tangible and intangible assets) or working capital loans (for business expansion and development). In Lithuania, the JEREMIE programme is financed by European Union structural funds and national resources according to the 2007–2013 Operational Programme for Economic Growth.
Please note that new financing agreements are no longer being concluded under the JEREMIE programme.
Requirements for recipients of financing under the JEREMIE programme:
Micro, small and medium-sized enterprises according to the Republic of Lithuania Law on Small and Medium-sized Business Development. The number of employees, annual income and the value of balance sheet assets calculated in the procedure established by this law.
Loans cannot be granted for projects directly related to primary fishery, aquaculture and agricultural products or to companies directly involved in the arms, tobacco, human cloning or gaming industries. Other restrictions may also apply.
Opportunities and benefits:
acquire fixed assets – equipment, production premises, etc.;
invest in other enterprises in expanding company activities;
implement new business projects or develop existing ones;
enjoy favourable financing conditions.
Information about potential risks:
Improper fulfilment of financial obligations increases your financing costs and may have a negative impact on your credit history, and if the agreement is terminated due to it being violated by you in essence, enforced recovery of debt may be initiated and you may lose your ownership rights to the pledged property.
Loan amount and duration:
the loan is granted for a period of at least 12 months; the maximum loan duration is 120 months (including the grace period and possible loan extensions);
the maximum amount of one loan and financing of this nature provided to a single client is EUR 3.2 million;
financing is only provided in euros.
the loan may be secured by a pledge of immovable and/or movable property, guarantees or sureties;
usually the object of the investment itself must be pledged.
How can I get a loan?
If you are interested in a loan, we would be happy to answer any questions you may have. Call us at 1633 for more information or
write to us. For your convenience, we will arrange the best time for you to meet with a specialist who will consult you individually.
For more information, call us at 1633 or
write to us.