Soft loans with INVEGA state guarantee

2020 April 24

Soft loans with INVEGA state guarantee

The specialised bank mano.bank is the first in Lithuania to sign an agreement with INVEGA for implementing the government’s measures Portfolio Guarantees for Loans 2 aimed at helping businesses affected by COVID-19. Based on these measures mano.bank will offer soft loans to coronavirus struck businesses and increase businesses’ access to financing during the crisis situation.

“We are strategically oriented towards helping small and medium-sized enterprises, that so far have not been able to receive support from major banks and are left to resolve their problems on their own. We are very glad to be able to offer the state’s financial support programme. This is a great opportunity for us to contribute to protecting businesses now and help ensuring more security during recovery following the crisis,” says Vytautas Olšauskas, the chairman of mano.bank’s board.

According to him, INVEGA programme Portfolio Guarantees for Loans 2 allows mano.bank to form over 40 million euro loan portfolio by the end of this year.

Vytautas Olšauskas says that companies facing difficulty due to COVID-19 can call on mano.bank for soft loans. There are two main factors determining if a business has suffered from the crisis. First, affected business is considered if a company’s turnover has decreased by over 40% and second if a company faces temporary liquidity problems, that are causing difficulties to uphold financial commitments.

The bank is oriented towards small and medium-sized enterprises loans that range from 100,000 euro to 1,000,000 euro. INVEGA guarantees 80% of the loan, thus the business must warrant at least 20% of the loan amount. Furthermore, INVEGA financial measure allows loan guarantees for loans up to 5 million euro therefore the bank invites large businesses with a lack of working capital to apply as well.

The duration of working capital loans can range from 6 months to 5 years.

Vytautas Olšauskas says that targeted annual interest rate under Portfolio Guarantees for Loans 2 programme start from 5% and can differ on case basis. The final terms of the loan depend on the company’s operations portfolio, its credit history, its mortgageable property or other guarantee measures.

The guaranteed credit portfolio can include: 
•    Working capital loans, including reverse leasing transactions, intended to maintain company liquidity and issued no earlier than March 16, 2020.
•    Non-guaranteed investment (including purchase lease contracts) and working capital loans (excluding reverse purchase lease transactions) that were signed before the crises, however no earlier than March 16, 2020 had their payment schedule extended or applied postponement of payments with all other loan conditions remaining the same. 

Loans can be included in the guaranteed credit portfolio up to December 31, 2020. Applications on the mano.bank website can be submitted from the 23rd of April, 2020.

mano.bank is the first specialised bank in the European Union. The bank received its banking license in October 2018, after the credit union reform and has officially restructured and started operating as a bank in January 2019. Mano.bank has since cardinally changed its brand while intensively developing its digital banking channels, which will help accomplish the bank’s mission – open access to financial tools for everyone.

Apply for credit here: https://mano.bank/business/credit

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