Europe to invest EUR 10m in micro-enterprises in the Baltic States

(LUXEMBOURG) - The European Investment Fund (EIF) and Noviti Finance signed a EUR 10 million cooperation agreement Thursday to give micro-businesses in the Baltic States (Latvia, Lithuania, Estonia) better access to finance.

The agreement is backed by the Employment and Social Innovation (EaSI) programme and by the Investment Plan for Europe. Noviti Finance will use this to give micro-businesses and farmers better access to funding of up to EUR 25,000 in all the Baltic States.

The agreement was welcomed by the European Commission. "The European Investment Fund's €10 million agreement under the Investment Plan for Europe with Noviti Finance means that small businesses with up to nine employees can benefit from loans of up to €25,000," said EC vice-president Valdis Dombrovskis : "This financial boost gives micro-enterprises in Latvia, Lithuania and Estonia a real opportunity to thrive and expand.”

Noviti Finance, a non-bank lender based in Lithuania, will use the guarantee instrument to support micro companies in all the Baltic States (Latvia, Lithuania and Estonia). The Investment Plan for Europe allows the European Investment Bank Group to invest in more and often higher-risk operations, while EaSI aims to improve access to finance for vulnerable groups, micro-enterprises and social enterprises.

Linas Armalys, Director of Noviti Finance said: "The agreement with the EIF means that, from now on, funding will be available to even more small businesses, on more favourable terms, with lower interest rates and in most of cases without collateral or personal sureties. Small businesses will be able to use the financing as working capital, or for business development, thus effectively helping to grow and manage risks due to the EIF-EaSI guarantee.”

Financing with the EIF-EaSI guarantee will be provided to companies with tenors of up to 24 months. Companies can apply for a loan with an EIF guarantee on Noviti Finance's website www.noviti.lt.