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During the LINEKA Congress, LPK President Vidmantas Janulevičius mentioned the Minister of Economy and Innovation 2022 of the Republic of Lithuania. June 7 order no. 4-801 changed the provision of individual guarantees for loans. These provisions regulate the activities of INVEGA, the state institution that distributes state aid to businesses. Aid guarantees provided by INVEGA facilitate access to financing sources for businesses affected by the crisis caused by the military aggression against Ukraine (hereinafter referred to as the war) by the Russian Federation. Assistance guarantees are provided for new leasing transactions and new loans intended to finance investments in tangible and/or intangible assets or to replenish working capital.

From 06/07/2022, not only representatives of small and medium-sized businesses can apply for assistance, but also large companies that have suffered from the crisis caused by the war in Ukraine.

Support is provided as guarantees for commercial and investment loans and financial lease transactions.

Support guarantees are provided:

1. for material investments - buying, building, repairing or reconstructing long-term assets;
2. for intangible investments - the adoption of technologies by acquiring patents, licenses or other non-patentable technical knowledge;
3. for working capital (in the form of short-term credit and/or credit line) required to finance the borrower's activities or (credit line) to provide guarantees for the fulfillment of obligations (contract performance, offer validity, advance repayment or payments);
4. to refinance investments paid with the company's funds (not earlier than during the last 6 months before the date of receipt and registration of the request for a guarantee). In such a case, together with the request for a guarantee, supporting documents for costs and payment must be submitted;
5. for financial rental (leasing) transactions.

A borrower or lessee is considered to have suffered from a crisis caused by war if:

Imports or exports were disrupted due to the crisis caused by the war. The share of imports or exports with Ukraine, the Russian Federation, the Republic of Belarus in total made up at least 25 percent of the total share of the borrower's imports or exports (including with the member states of the European Union) as of 2021. January 1 until 2021 December 31

or

Costs for fuel, electricity and/or gas accounted for at least 3 percent of costs in 2021.

and

Does not have or has terminated trade obligations with the Russian Federation and/or Belarus no later than 2022. June 30

In order to use the facility, the company must first approach a financial intermediary - a bank, credit union or leasing company - and agree on financing. Financial intermediaries apply to INVEGA.

It should be noted that the aid under this measure is de minimis aid. The concept of de minimis is used to describe state aid of a small value, which is not subject to the requirement to harmonize the aid with the European Commission. The maximum de minimis aid for one economic entity during the period of three tax years (the applicable tax year used by the company) can usually reach 200,000 euros. Consequently, if the company has used support for other measures in the last three years (e.g. after suffering from COVID-19, employee training, business missions, exhibitions, etc.), then it can no longer apply for aid after suffering from war.

How much a company (or group of companies) has already used insignificant state aid can be checked here: https://kotis.kt.gov.lt/gauti-pazyma.

Support guarantees are provided for no longer than:

for a term of 72 months - for investment loans and leasing transactions;
36 months - for revolving loans.
The investment loan repayment deferment period cannot exceed 12 months and loan repayments must be made in a linear fashion.
Aid guarantees are provided until 2022. December 31st.
The maximum guaranteed amount of a loan or leasing transaction per recipient is 15 percent. average annual turnover of the borrower or lessee over the last 3 years; or 50 percent energy consumption during the 12 months preceding the month of application submission.
The intensity of the guarantee is up to 90%.
The maximum amount of all available aid guarantees cannot exceed 10 million Euro.