Micro-enterprises and farmers in Lithuania can now benefit from non-banking business funding opportunities under the EU Programme for Employment and Social Innovation (EaSI). Vilnius Factoring Company, a private lending company in Lithuania, has signed a cooperation agreement with the European Investment Fund (EIF) to issue microloans of up to €25,000.
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The company is issuing microloans up to a total of €10 million with a guarantee backed by EaSI and the European Fund for Strategic Investments (EFSI) that allow the European Investment Fund to support higher-risk operations.
The aim of the EaSI programme is to provide micro businesses with better access to finance. More specifically, conditions to gain access to such financing are less stringent than access to finance from traditional banking sources, also thanks to significantly lower collateral requirements. The funds can be invested in either the company's working capital or its business development.
Microloans will be provided to small farmers and enterprises with no more than 9 employees. The annual turnover and the amount of assets these enterprises carry should not exceed €2 million.