Loans Perspective
Funding for industrial research, pilot development and innovation.
It is a translation. Due to possible different interpretations because of differences in the languages, the Lithuanian approved legal act should be applied.
For more information on the documents you need to submit, see the website in the original language.
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This is translated information. In case of any discrepancies, the original Lithuanian version shall prevail. |
Who is eligible?
Who can apply?
For funding of industrial research and/or pilot application activities:
- In the central and western regions of Lithuania, SMEs and large companies can apply.
- In the capital region, SMEs, small enterprises, and large enterprises can apply.
In this case, state aid is provided according to the General Block Exemption Regulation. The project for which funding is requested must not have started implementation by the date of application submission.
For funding of industrial research and/or pilot application and innovative activities, SMEs and large companies operating in the central and western regions of Lithuania can apply. In this case, industrial research and/or pilot application activities are mandatory in the project, and aid is provided to the business entity according to the De Minimis Regulation.
Loan Amount & Duration
The maximum amount for a single loan is 10 M. EUR. Multiple loans may be granted to a single borrower, but the total amount of loans cannot exceed 10 M. EUR.
The maximum loan duration is 10 years. In cases of objective reasons, the loan duration may be extended up to 15 years, provided it does not contradict the provisions of the General Block Exemption and/or De Minimis Regulations.
Loan agreements can be signed until June 30, 2029. The loan funds will be disbursed according to the terms specified in the agreement and, in any case, no later than December 31, 2029.
Interest
Loans are provided with a fixed annual interest rate.
If the borrower is eligible for state aid under the General Block Exemption Regulation or de minimis aid under the De Minimis provisions, the following preferential interest rates will apply to the loan:
- 0% annual interest rate for a period of 5 years from the date of signing the loan agreement until income from the project starts to be received, when the business has been operating for no more than 3 years; followed by a 2% annual interest rate for the remaining loan period.
- 0% annual interest rate for a period of 3 years from the date of signing the loan agreement until income from the project starts to be received, when the business has been operating for more than 3 years; followed by a 2% annual interest rate for the remaining loan period.
If the business has an insufficient balance of state aid or de minimis aid to apply preferential interest rates, there is an option to choose to pay interest at a level that allows for the remaining unused state aid or de minimis aid amounts to be sufficient.
Where to apply?
The loan application and related documents should be submitted through the ILTE application submission system.
Terms
Applications are assessed in the order determined by their registration date and time.
The evaluation period may be extended, considering objective circumstances (such as an unusually high volume of applications received and being evaluated, technical difficulties in assessing applications, or the need to involve experts to evaluate the project's commercial viability), but the extension cannot exceed 60 business days.
The grant is provided at the borrower's discretion, indicated in the application for the loan.
The grant amount is up to 30% of the loan amount granted. The corresponding portion of the loan will be written off (reducing the loan amount).
The decision regarding the potential grant is made concurrently with the decision to grant the loan. The grant is provided only if the borrower has sufficient state aid or de minimis aid available (the maximum allowable amount of de minimis aid or state aid is not exceeded).
The loan amount will be written off (reduced) only if:
- The borrower submits a request for the grant in free form; and
- The borrower properly implements the project, i.e., carries out the project activities specified in the loan agreement and submits a report on the completed activities.
30-08-2024 UAB "Investicijų ir verslo garantijos" became UAB ILTE.
A fixed annual interest rate is established for the entire loan period, provided the loan conditions remain unchanged (repayment schedule, loan duration, collateral value).
Interest is calculated on the amount received by the borrower that has not been repaid. Interest begins to accrue from the day the loan amount is disbursed to the borrower and is calculated until the loan is fully repaid. Interest is paid monthly.
A loan may be granted when:
- The borrower operates within the Republic of Lithuania.
- The borrower meets the minimum criteria of a reliable taxpayer as established in Article 401 of the Republic of Lithuania’s Tax Administration Law.
- The state and/or municipality hold no more than 25 percent of the business entity’s shares, equity, or other capital participation.
- There is no bankruptcy and/or restructuring case initiated against the borrower, and it is not being liquidated.
- The borrower and its corporate group have not encountered difficulties at the time of application and have submitted a set of financial statements to the State Enterprise Centre of Registers (when required by Lithuanian law).
- The borrower has not received state aid deemed illegal and incompatible with the internal market by the European Commission and/or the lender, or has repaid the entire amount, including interest, in accordance with legal provisions.
- The borrower’s equity ratio (the ratio of equity to total assets) after the loan is not less than 0.1 or 0.15, including loans provided to the business entity by shareholders, related parties, and/or other third parties, subordinated to the loan(s) from ILTE.
- The borrower, its manager, representative, individuals within the ownership and management structure of the business entity, beneficiaries, or individuals and legal entities benefiting from the loan, as well as those involved in the transaction and/or payment and supply chain, are not subject to international sanctions and/or restrictive measures.
- The risk of non-repayment of the loan is at an acceptable level, including risks related to the reputation of the business entity, its manager, owner, and beneficiary, and the project is recognized as economically justified and financially viable during the application assessment by ILTE.
- The borrower has no or has terminated commercial obligations with entities from countries hostile to the Republic of Lithuania: the Russian Federation, the Republic of Belarus, the annexed Crimea, the Republic of Moldova, the unregulated territory of Transnistria, and the unregulated territories of Abkhazia and South Ossetia by the Government of Georgia before August 31, 2022.
- The borrower does not maintain business relations with legal entities registered in jurisdictions that do not cooperate with the European Union in the area of internationally coordinated tax application, and does not conduct or intend to conduct transactions with legal entities registered in targeted jurisdictions (the list of targeted jurisdictions is approved by the Order No. 344 of the Minister of Finance of the Republic of Lithuania dated December 22, 2001, “On the Approval of the List of Targeted Jurisdictions”).
Requirements applicable only if the project is implemented in the Capital Region:
- In the past 5 years, the business entity, its manager, member of the administration, management, and/or supervisory body, or an individual with representation, decision-making, or control powers has not been found guilty by a final court ruling or final administrative ruling, and has no unresolved or unrescinded convictions for:
- Serious professional misconduct;
- Fraud;
- Corruption;
- Criminal association;
- Money laundering or financing of terrorism;
- Terrorist crimes or crimes related to terrorist activities;
- Child labor or other trafficking-related offenses;
- Improperly executed obligations related to EU financial aid, resulting in early termination of obligations or demands for compensation or other sanctions;
- Violations as defined in Article 1(2) of Council Regulation (EC, Euratom) No. 2988/95 regarding the protection of the financial interests of the European Communities, meaning any violation of Community law provisions related to the actions or inactions of the economic activity operator that causes harm to the Community budget or its managed budgets by reducing or losing income derived from own resources directly collected on behalf of the Communities, or incurring unjustified expenses;
- Establishing an entity in another jurisdiction intending to evade tax, social, or any other legal obligations according to its registered office, central administration, or primary place of business jurisdiction, or it has been determined that the business entity was established with the intention specified in this subparagraph;
- In the past 5 years, the business entity has not been found guilty by a final court ruling or final administrative ruling and has no unresolved or unrescinded convictions for failing to fulfill obligations related to tax or social insurance contributions;
- The business entity's project aligns with at least one of the priorities of the Smart Specialization Concept.