FAQ for Lithuania in English

Where do you plan to get your financial resources to start the business? 

Usually business is established using personal funds without external funding.
The most popular external funding sources are banks and credit unions. However, collateral is usually required and high risk assessment requirements for the company are raised, therefore, it is quite difficult to get approved for a loan for a new company.
For some businesses it is possible to use EU structural funds’ loans or loan guarantees granted under various business support programs.

More information:

Financial support for small and medium-sized businesses is provided by the following institutions:

  • National Development Body INVEGA
  • Employment Service
  • Ministry of Agriculture of the Republic of Lithuania
  • Municipalities of cities and districts
  • Lithuanian Business Angels Network — Litban
  • Crowdfunding

EU Structural Funds

For some businesses it is possible to use EU structural funds’ loans or loan guarantees granted under various business support programs. You may receive soft loans for start-up businesses. Soft loans are those that are more favourable than conditions which market provides. In most cases the state is the entity that facilitates the debtors’ burden in paying annual interest on a loan repayment period.

Financial support for small and medium-sized businesses is provided by the following institutions:

National Development Body INVEGA

  • Soft loans under the Entrepreneurship Promotion Fund (EPF2) up to EUR 25,000.

More information: http://invega.lt/en/solf-loans/entrepreneurship-promotion-fund/

More information: http://invega.lt/en/solf-loans/open-credit-fund-2/

  • Risk-shared loans financed by the European Regional Development Fund (RSL) up to EUR 4 mln.

More information: http://invega.lt/en/solf-loans/risk-shared-loans-2/

Employment Service

Provides subsidies to remuneration when hiring disabled people, long-term unemployed, unemployed aged 50 plus, refugees and other individuals whose employment is promoted by the state.

Ministry of Agriculture of the Republic of Lithuania

Provides soft loans and subsidies for the ones conducting businesses in rural areas:

  • Support for starting of economic activities in rural areas.
  • Investments for setting up and development of economic activities.

Municipalities of cities and districts

Provides financial support for start-ups and other business entities under the small and medium business support programs. Find more information on websites of each municipality.

Lithuanian Business Angels Network — Litban

Entrepreneurs, having experience and funds, finance new promising businesses.  Business Angels help both financially and by transmitting their knowledge, experience and business contacts.

More information: https://www.litban.lt/

Failing to get funding in the above mentioned way, you can always try crowdfunding. Crowd funding is the funding of a project of any kind by raising monetary contributions from a large number of people. Business idea and necessary funds are announced using special platforms (such as Kickstarter, Indiegogo, FundedByMe), and people make small contributions to help to implement that idea.

Business support from EU Structural Funds is also available. Calls to apply for grants are issued. Call are published on the website of Ministry of Economy and Innovation:

Calls are administered and consultations on the preparation of applications and implementation of projects are provided by the Lithuanian Business Support Agency (LVPA) and Agency for Science, Innovation and Technology (MITA).

You may also participate in public tenders and provide services to other companies. Invitations to tender are published on Central public procurement portal: https://cvpp.eviesiejipirkimai.lt/.