The European Investment Fund (EIF) and SME Finance in Lithuania have joined to provide €40 million in financing for businesses in the Baltics and elsewhere, according to a statement by the EIF.
The EIF will be providing a guarantee to SME finance to provide investments into SMEs and micro-firms. The program is under the InvestEU program.
The funding will be delivered in the form of loans, leases, and factoring in the Baltics, Finland, and the Netherlands.
Portfolio guarantees of up to 80% will be provided.
SME Finance will also provide microfinancing of up to €50,000 specifically designed for very small businesses employing up to ten employees with yearly revenues that do not exceed €2 million.
SME Finance CEO Mindaugas Mikalajūnas said the flexible and digital financing solutions already cover investment projects and working capital.
“We now offer even better pricing, reduced collateral requirements, or even no collateral at all.”
The EIF points to a study that shows that Lithuanian banks reject 32% of loan applications from small businesses, while the EU average is 7%.
