“The last few years have been challenging. While we have been quick to provide businesses with effective and rapid support measures, now we want to help businesses to get stronger, stay competitive and retain jobs. That’s why we have prepared an economic stimulus plan of almost EUR 1 billion and we encourage businesses to take advantage of other measures in the plan to help them grow and invest in the future,” says Aušrinė Armonaitė, Minister of Economy and Innovation.
To cope with the challenges posed by the difficult economic situation, companies will invest in the acquisition of anti-crisis performance management services – the applicants are requesting the Innovation Agency Lithuania to allocate EUR 0.99 million of EU investment funds to implement their project implementation plans. Companies from 9 counties and 26 municipalities in Western and Central Lithuania have submitted their plans, with businesses operating in Kaunas County being the most active by submitting two thirds of the project implementation plans. In terms of activities, the largest number of projects were submitted by catering companies, travel agencies and hotels or accommodation businesses.
“We will help a significant number of companies in Central and Western Lithuania that have lost revenue to acquire an anti-crisis performance management service, and they commit to apply its results to their operations by the end of the project. The managers of companies will benefit from the advice and insights of external business consultants, financial risk management experts and other professionals. We believe that this will help struggling businesses to optimise costs, restore short-term solvency and regain financial stability,” says Gintarė Kuncaitytė, Deputy Director of the Investment Management Department of the Innovation Agency Lithuania.
Up to EUR 10,000 has been allocated for the purchase of anti-crisis management services and up to EUR 5,000 for the purchase of operational cost optimisation services. EU investment funds cover 50% of the total project costs and the vast majority of businesses (91 out of 98) applied for the maximum possible funding. In total, the call foresaw a total of EUR 2.5 million of EU investment funds for SME recovery projects, of which EUR 0.99 million has been requested according to the project implementation plans submitted.
Companies will have to implement the funded projects within 12 months from the date of granting the funding. Only companies that have been in operation for at least three years were eligible for this funding, and the assessment of the drop in their revenues was based only on revenues from their own production or services, not from resale.
The highest number of project implementation plans (58%) came from Kaunas County, followed by Klaipėda County (12.25%) and Šiauliai County (9.18%). In total, 98 plans were received from 9 counties and 26 municipalities.
In terms of activities, the most frequent applicants were catering businesses (24.49%), travel agencies (8.16%) and hotels or other accommodation businesses (6.12%).
To strengthen the Lithuanian economy, the Ministry of Economy and Innovation plans to implement measures totalling almost EUR 1 billion by the end of 2023. Of this amount, EUR 365 million has been earmarked for business, innovation and investment.
All current and forthcoming calls with detailed descriptions and terms are available on the website of the Innovation Agency Lithuania (in Lithuanian). The Innovation Agency Lithuania also provides free advice on starting and growing a business and on choosing the right financing instruments.
