Brussels, 13 April 2023
The European Investment Fund (EIF) and Noviti Finance, Lithuania’s alternative non-bank business financier, have signed a portfolio guarantee agreement under which almost €47 million will be lent on preferential terms to micro-businesses in Lithuania, Latvia, and Poland. The EIF guarantee benefitting the microfinance business is provided under the European Union’s InvestEU programme.
Noviti Finance has been operating on the market since 2016. During this period, the company has financed more than 3,500 companies in the Baltic States, where Noviti Finance actively contributes to the promotion of small businesses. Thanks to the European backing, it is expected that around 2,640 microloans will be signed under this programme and micro-enterprises with up to 10 employees and annual revenues of up to €2 million will be able to borrow up to €50,000. Businesses will not be asked to pledge any assets; and, in some cases, loans will even be granted without any collateral. Loans will be granted for both investment and working capital purposes.
Executive Vice-President for an Economy that Works for People, Valdis Dombrovskis, said:
“InvestEU plays a crucial role in helping small EU businesses get the financing they need to grow, innovate and create jobs. Thanks to today’s new InvestEU agreement, micro-businesses in Lithuania, Latvia and Poland will benefit from loans that are tailored to their needs. This will enable them to overcome the obstacles they face in accessing finance so that they can reach their full potential.”
The InvestEU programme provides the EU with long-term funding by leveraging private and public funds in support of EU policy priorities. As part of the programme, the InvestEU Fund is implemented through financial partners who will invest in projects using the EU budget guarantee and thus mobilising at least €372 billion in additional investment.
A press release is available online.
Source – EU Commission