Information is being prepared.
About the SAF
The State Aid Fund for Business invests in medium-sized and large enterprises in Lithuania affected by the coronavirus outbreak, the termination or disruption of the activities of which may affect the sustainability of operation of other businesses and have significant socio-economic consequences.
For businesses affected by COVID-19
Medium-sized and large enterprises operating for more than 2 years may choose from the following financing instruments:
from EUR 0.3 million to EUR 2 million
from EUR 2 million
Shares and hybrid instruments
The state will invest in the State Aid Fund for Business through UAB Valstybės Kapitalo Investicijos (Private Limited Liability Company State Capital Investments). The plan is to invest the total of EUR 500 million, of which EUR 100 million will be disbursed at the beginning of the establishment of the Fund and the remaining EUR 400 million will be invested in issued bonds.
The Fund will also seek to attract institutional investors to invest in loans of Lithuanian companies, debt securities, shares and hybrid instruments through the Fund. The plan is to raise more than EUR 500 million this way.
Today, the Board of UAB Valstybės Investicinis Kapitalas met with the management of the Ministry of Economy and Innovation at the meeting held at the Ministry. Issues relating to the recruitment of the company’s CEO and other relevant issues concerning activities of UAB Valstybės Investicinis Kapitalas were discussed at the meeting. The private limited liability company Valstybės Investicinis Kapitalas established by the Ministry of Economy and Innovation is a limited partner of the State Aid Fund for Business established as a limited partnership, which will contribute the state contribution to the Fund.
The State Aid Fund for Business will be launched today. It will help to ensure the liquidity of medium-sized and large enterprises, their access to financing and faster recovery from the crisis.
“After assessing the candidate’s experience, competence and motivation, the Board decided to appoint Dainius Vilčinskas the CEO of VIVA. We hope that after he starts working in the nearest future, works of the State Aid Fund for Business will gain new momentum,” says Normantas Marius Dvareckas, Chairman of the Board of VIVA.
Frequently asked questions
The State Aid Fund for Business will provide financial aid for the maximum term of 6 years.
The loan amount may range from EUR 300 000 to EUR 2 million, while aid in the form of debt securities will be provided from EUR 1 million. Loans or bonds for one company shall not exceed 25% of turnover of the company in 2019; a subordinated loan for a large enterprise may not exceed 8.4% of its turnover in 2019 and for a medium-sized enterprise - 12.5% of its turnover in 2019. Investments in equity shall be made to the extent which would allow the company to continue its activities, without exceeding its pre-crisis capital.
Information on the criteria for financial aid provided by the State Aid Fund for Business is available here.