Home Plan Other subsidies
Updated: 2016-08-04 16:14

Other subsidies

WHAT IS SUBSIDY?

Subsidy is non-repayable financial support granted by state or municipal institutions and other third parties.

WHAT TYPES OF SUBSIDIES ARE AVAILABLE?

I. Subsidies granted by the labour exchange:

For wages compensation

Subsidies are granted when one of the following supported measures are implemented:

  • subsidised employment (aimed at assisting additionally supported unemployed and employees with dismissal notice to establish themselves on the labour market, by paying subsidies to employers to cover their wages);
  • support to trade skills acquisition (aimed at providing job seekers with lacking trade skills directly at the workplaces, and providing employers with a possibility to choose the most suitable worker);
  • public works (wages subsidies are paid to employers for employing persons sent by the territorial labour exchange under employment agreement for public works);
  • job rotation (aimed at providing unemployed with an opportunity of temporary employment and employers with an opportunity of replacing employees during their holidays or in the cases stipulated in collective agreements. Employers who employ persons sent by labour exchange for work rotation are paid wages subsidy.

Subsidised job creation

Subsidies are granted when one of the following supported measures are implemented:

  • job creation subsidising (aimed at promoting employers to create jobs or to adapt the existing ones to disabled unemployed, by employing them under employment agreements of indefinite term);
  • self-employment support (individuals (former unemployed) who have good ideas regarding their own business organisation or development can be offered by the territorial labour exchange financial support for job creation);
  • local employment initiatives project (Local Employment Initiatives projects (LEI) are new job creation projects aimed at combining local community and social partners' efforts to increase employment rate of the population of individual regions and development of local social economic infrastructure).

Further information about the subsidies provided by the Lithuanian Labour Exchange

II. Subsidies offered by JSC "Investicijų ir verslo garantijos“ (INVEGA):

Usual business financing method is a loan issued by a bank or credit union. But a credit institution when deciding on loan granting will request for a deposit from you. If your deposit available is not sufficient, this problem can be solved by INVEGA. INVEGA guarantees part of the SME's loan (maximum 80%) to the bank and  compensates maximum 50% of the guaranteed loan interest. In order to obtain INVEGA's offered loan guarantee, one should apply to a credit institution and negotiate on terms and conditions. Loan interest is eligible to compensation only if loans have been taken with INVEGA guarantee.

Further information about the guarantees and subsidies granted by INVEGA

III. Municipal small and medium enterprises promotion funds:

Small and medium enterprises promotion funds (depending on the statute of a specific fund) established in municipalities can offer financial support for partial compensation of the interests of bank loans and for issue of interest-free loans, partial compensation of business incorporation expenses, businessmen's consulting and training, issue of publications on regional SME development, compensation of expenses of entrepreneurs' participation in exhibitions, trade fairs, business missions, etc.