Lithuania allocates extra funding to boost small and medium business loans

The Ministry of Economy and Innovation of Lithuania allocated an additional 30 million euros from European Union funds to the Startuok direct loan instrument.

This financial tool is managed by the national development bank, ILTE, to support small and medium-sized businesses that want to start or expand their operations. The ministry changed the terms of the program to make it more accessible.

Businesses operating in the capital region can now access the funding, and the subsidy portion for investment loans increased from 20 to 30 percent. The maximum amount for turnover loans also rose from 200,000 to 500,000 euros. Eligible applicants include businesses operating for up to three years, social impact project organizers, and companies owned by entrepreneurs under the age of 55. The program also provides specific support for Ukrainian citizens or legal entities operating in Lithuania.

These groups, along with social impact organizers, can receive a 70 percent discount on annual loan interest rates.