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2020.04.09 10:25

Government support for businesses and workers – when to claim

LRT.lt2020.04.09 10:25

The Lithuanian government has pledged five billion euros to help businesses and workers withstand the economic shock caused by the pandemic. Here's when you can start requesting support, according to guidelines published by the government.

April 3 – small and medium-sized enterprises can already request the so-called loan holidays, which will fully compensate the interest charged since March 16 when the country declared a nationwide quarantine. The compensation is paid on a monthly, rather than quarterly basis, and is granted for a maximum period of six months until December, 31, 2020.

April 5 – self-employed people, as well as businesses who need to put their workers on downtime (prastovos), can turn for subsidies at the Employment Services (Užimtumo Tarnyba). Self-employed people can receive a fixed sum of 257 euros per month, while businesses can have 70 or 90 percent of the employees’ monthly wage – but no less than the monthly minimum wage – compensated.

As of Monday, 5,548 self-employed people, and 38 businesses have already requested support.

April 10 – small and medium-sized enterprises will be able to request government loans to pay their suppliers.

April 14 – small and medium-sized enterprises will be able to ask for loans to maintain liquidity – pay rent, wages, or other crucial expenses. The financing will take one day to approve.

April 15 – a new fund will begin operating aimed to shore up medium and large-sized enterprises. The fund will provide liquidity by investing in companies' shares or debt securities and serve as a lender of last resort.

April 16 – the government will start providing portfolio guarantees for loans under better conditions than usual.

More details on how to file a claim can be found on the government's Investment and Business Guarantees’ (Invega) website.

Read more: Around 32,000 businesses in Lithuania offered tax breaks