What we do
Coronavirus pandemic: The EIB Group’s initiatives to address the economic consequences of the crisis
Pan-European Guarantee Fund – EGF
Sustainable Development Umbrella Fund
SDUF Health Compartment
Equity products
AI Co-Investment Facility
Technology Transfer
European Angels Fund (EAF) - Co-investments with Business Angels
Venture capital
The Social Impact Accelerator (SIA)
Lower mid-market
Mezzanine Facility for Growth
VentureEU
EFSI Equity instrument
Single EU Equity Financial Instrument
COSME - Equity Facility for Growth
InnovFin Equity
Private equity secondary market transactions
EIF-NPI Equity Platform
ESCALAR Programme
Debt products
New ESIF ERDF Guarantee Fund initiative in Greece
EFSI Private Credit Programme
AGRI Guarantee Facility
AGRI Italy Platform Uncapped Guarantee Instrument
Credit enhancement
Cultural and Creative Sectors Guarantee Facility (CCS GF)
ENSI - Securitisation Initiative
Erasmus+ Master Loan Guarantee Facility
Skills & Education Guarantee Pilot
EREM debt products
Single EU Debt Financial Instrument
COSME - Loan Guarantee Facility
Documentary Finance Facility – Bulgaria
The SME Initiative
The SME Initiative Bulgaria
The SME Initiative Finland
The SME Initiative Italy
The SME Initiative Malta
The SME Initiative Romania
The SME Initiative Spain
Inclusive finance
EaSI Financial Instruments
EaSI Capacity Building Investments Window
EaSI Guarantee Instrument
EaSI Funded Instrument
European Progress Microfinance Facility
Entrepreneurs supported through Progress Microfinance
European Fund for Strategic Investments (EFSI)
How does EIF contribute to EFSI
How to apply for EFSI financing
Regional Development - Country and sector-specific initiatives
Dutch Future Fund (DFF)
PORTUGAL BLUE: a new initiative for blue economy investments
JEREMIE Greece Reflows – Business Angels’ Co-Investment Equity Instrument
German Corona Matching Facility (CMF)
Portugal Growth programme
Croatian Growth Investment Programme (CROGIP)
AGRI Italy Platform Uncapped Guarantee Instrument
ALTER’NA – ESIF EARFD Nouvelle-Aquitaine
Baltic Innovation Fund 1 (BIF 1)
Baltic Innovation Fund 2 (BIF 2)
Central Europe Fund of Funds (CEFoF)
Croatian Venture Capital Initiative (CVCi FoF)
Competitiveness Fund-of-Funds for SMEs in Romania
Deep and Comprehensive Free Trade Area Initiative East Guarantee Facility (DCFTA)
Dutch Growth Co-Investment Programme
Dutch Venture Initiative (DVI-II)
ESIF Fund-of-Funds Greece
EAFRD FoF Portugal
EAFRD FoF Romania
The ERP-EIF Facility
ERP-EIF Co-Investment Growth Facility
The LfA-EIF Facilities
INAF – French National Agricultural Initiative
ESIF Energy Efficiency and Renewable Energy Malta
Regional Fund-of-Funds Romania
ESIF Fund-of-Funds Czech Republic
The Silesia EIF Fund of Funds
La Financière Région Réunion
The EIB Group Risk Enhancement Mandate (EREM)
EstFund
FOSTER TPE-PME Occitanie
Greater Anatolia Guarantee Facility (GAGF)
G43 - Anatolian Venture Capital Fund Project
InvestBG Equity Instrument
JEREMIE
JEREMIE Romania Reflows – Equity Instrument
Luxembourg Future Fund (LFF)
Mezzanine 'Fund of Fund' for Germany (MDD)
Polish Growth Fund of Funds (PGFF)
Portugal Venture Capital Initiative (PVCi)
Scottish-European Growth Co-Investment Programme
Slovene Equity Growth Investment Programme (SEGIP)
Swedish Venture Initiative (SVI)
Turkish Growth and Innovation Fund (TGIF)
Western Balkans Enterprise Development & Innovation Facility (WB EDIF)
EAFRD FoF Greece

Covid-19 support measures: EU backing for micro-lending in Lithuania

  •  
    Date: 14 December 2020
  • The EIF has signed a guarantee deal with Faktoro, allowing them to start a programme of micro-loans to small companies in Lithuania, as part of the EIB Group’s Covid-19 support measures.
  • The guarantee of a portfolio of up to €6 million in micro-loans is backed by the European Union under EU programme for Employment and Social Innovation (EaSI).
  • The financing is expected to support up to 330 transactions with small businesses, for a maximum loan amount of €25,000

With EU-backing, over 300 Lithuanian micro-enterprises are set to get access to finance through a guarantee deal between the European Investment Fund (EIF) and fintech company Faktoro. Known for its factoring services, the up to €6 million guarantee deal will allow Faktoro to start awarding working capital loans of up to €25,000 to micro enterprises in Lithuania. The EIF-guarantee is supported under the EU programme for Employment and Social Innovation (EaSI)

Faktoro will use the EaSI guarantee to launch a new working capital lending product for micro-enterprises in start-up or development phase, and expects to serve around 330 clients. In the current difficult economic environment, the EIF will initially guarantee up to 90% of all transactions as part of its Covid-19 support measures. Apart from enhancing access to finance for micro-enterprises in Lithuania, the working capital loan offered will be essential in providing liquidity to companies during the Covid-19 economic recovery.

European Commissioner for Jobs and Social Rights, Nicolas Schmit, said: “Thanks to EU-backing by the EaSI Guarantee, this agreement between European Investment Fund and Faktoro will unlock access to finance for more than 300 small businesses in Lithuania. The ongoing Covid-19 crisis continues to hit hard many micro-enterprises across Europe. The Commission will continue to use all the tools at its disposal to protect workers and preserve jobs.”

Small businesses have always been struggling with traditional bank finance, and the economic fallout of the Covid-19 pandemic can further deteriorate their access to finance,” said EIF Chief Executive Alain Godard  “That is why we are glad to support microfinance in Lithuania through Faktoro, which focuses on the start-up segment. Since the Baltic countries are traditionally a hotbed for innovation, backing access to finance for tomorrow’s solutions is high on our priority list.

Firstly we are very happy and proud for the given trust from EIF to have the ability to finance micro and small enterprises that need help. Micro and small enterprises will now have the ability to receive loans in particularly flexible conditions, without additional collaterals. We expect that in this period of uncertainty and after, this facility will help Lithuanian companies to expand and create more jobs. ” said Algirdas Gutauskas, CEO of Faktoro.

Background information:

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.

The EIF does not provide any type of finance to micro-entrepreneurs or social enterprises directly. Through this window, EIF will invest in financial intermediaries operating in the microfinance and social entrepreneurship space, which are selected after an application submitted under a call for expression of interest followed by a due diligence process. Once selected by the EIF, these partners act as EaSI financial intermediaries.

The European Union Programme for Employment and Social Innovation (EaSI) aims at contributing to the implementation of the Europe 2020 strategy by supporting the EU's objective of high level employment, guaranteeing adequate social protection, fighting against social exclusion and poverty and improving working conditions. The EIF has been entrusted by the European Commission to manage several financial instruments under the EaSI programme’s Microfinance and Social Entrepreneurship axis, the EaSI Guarantee being one of them.

Faktoro, incorporated as Taurus Fondas UAB, is a young, private, limited liability fintech company that launched operations in 2016 and is registered as a non-bank financial institution in Lithuania. The company focuses on providing factoring services to micro, small and medium enterprises via digital channels, and its services include factoring with and without recourse, as well as reverse factoring. Faktoro is highly engaged in the micro client segment, with a focus on start-ups, as businesses with less than 5 years of operations currently make up a quarter of Faktoro’s clients.

Press contacts:

EIB Group: Tim Smit, Tel: +352 691 28 64 23, t.smit@eib.org, Follow us on Twitter
Website: www.eib.org/press - Press Office: +352 4379 21000 – press@eib.org

Faktoro: Paulius Lastas, paulius@faktoro.lt

European Commission: Flora Matthaes, +32 460 755148, flora.matthaes@ec.europa.eu

 

We use cookies to give the best browser experience on our website. or change cookie settings.

Note: Following the recent withdrawal of the United Kingdom from the European Union, we are updating the relevant EIF.org pages.

 
 

Copyright ©

 European Investment Fund 2021 – The European Investment Fund is not responsible for the content of external internet sites.