The European Investment Fund (EIF) and Capitalia have signed a guarantee agreement to support small businesses in Latvia, Lithuania and Estonia, with a total of 10 million euros. The agreement is supported by the European Fund for Strategic Investments (EFSI), the heart of the Investment Plan for Europe, and by the Employment and Social Innovation (EaSI) programme
European Commissioner for Employment, Social Affairs, Skills and Labour Mobility Marianne Thyssen said: “Giving small entrepreneurs the means to put their talent to work with better access to finance is one of our key priorities. This is how we will build a fairer and a more inclusive European Union.”
Head of Inclusive Finance at EIF, Per-Erik Eriksson said: “With the support of the EU’s EaSI programme, Capitalia will be able to scale up its micro and small business lending activities in line with its strategy to maintain its unique market position as alternative financing provider in the Baltics. This expansion of its activity is expected to provide a significant impact in terms of financial and social inclusion in all three Baltic countries and EIF is pleased to support this aim.”
“We are very pleased that Capitalia is the first private alternative financing institution in the Baltics that has qualified for this reputable guarantee program. Conclusion of this deal with EIF means that we will be able to provide loans to businesses at more favorable rates and without collateral requirements. Under this program companies will be able to receive financing of up to 25,000 euros,” added Juris Grišins, manager of Capitalia.
In order to qualify for the EaSI guarantee companies should have a turnover of below two million euros and have no more than nine employees. Financing to businesses will be provided for a term of three months to five years.