FIRST BUSINESS SUPPORT PACKAGE STARTS: SUBSIDIES AND LOANS
„Our first priority is to help businesses paralyzed by quarantine. We must sustain Lithuania‘s competiteveness, jobs, variety of trade, therefore we do everything to really support business. Largest part of support will be distributed in form of subsidies – this will help some businesses to survive. We are working hard on the second support package. Understanding that no support can help as much as reopening of business, at the same time we consider how to gradually allow businesses to restart when the situation improves“ – says minister of economics and innovation Aušrinė Armonaitė.
Subsidies from EUR 500 up to 800,000 can be claimed by companies which experienced 30% or larger reduction of average monthly turnover. The approximate number of such companies is 94,000.
Reduction of turnover is calculated for the period from November 1, 2020, until January 31, 2121, vs 2019-2020. Companies which paid more than EUR 2,000 of personal income tax are eligible for subsidy equalling 25% of the amount paid. Those, who paid less than 2,000, are about to get EUR 500.
Applications are to be submitted to State Tax Inspectorate, evaluated by Lithuanian Business Support Agency (LVPA) and subsidies are expected to be paid in approximately two weeks after the application is submitted.
Companies which experienced no less than 30% reduction of turnover as well as those forced to close down because of the quarantine are eligible for easy loans of up to EUR 100,000. Loans are to be provided by INVEGA.
Interest rates will vary from 0.1% to 1.69% depending on repayment schedule and status of the borrower, loans could be used to cover expenses for the period from October1, 2020, until October 30, 2121.
Companies from all sectors, except agriculture, fisheries, aquaculture and finance are eligible.