Guarantee agreement to enable as much as €55 million in financing for micro, small and medium-sized businesses as well as social enterprises.
Faktoro is first financial intermediary in Baltics to receive EIF funding targeting social businesses.
EIF commitment backed by InvestEU programme.

Faktoro, a leading alternative non-bank business financier in Lithuania, has signed a guarantee agreement with the European Investment Fund (EIF) to bolster the competitiveness of local businesses. The agreement covers micro, small and medium-sized businesses, social enterprises, the cultural and creative sectors, and investments in energy-efficient buildings and renewable energy.

With the guarantee, which is backed by the InvestEU programme, Faktoro will issue up to €55 million in new financing, facilitating access to funds for more than 800 companies in Lithuania. Additionally, with a €1.9 million subordinated loan under the InvestEU Capacity Building Investment (CBI) programme, Faktoro will be able to focus more on supporting micro and social enterprises. Faktoro is the first EIF partner in the Baltics targeting social businesses focusing on care for older and disabled people.

Most of the financing under the guarantee agreement will support enterprises with up to 250 employees, an annual turnover of no more than €50 million and a balance sheet total of €43 million or less, while small mid-caps and small public enterprises are also eligible. Specifically, Faktoro has secured a guarantee for a €14 million portfolio of microloans of up to €50 000 for qualifying companies with fewer than ten employees and an annual turnover below €2 million.

Algirdas Gutauskas, chief executive officer of Faktoro, emphasised the guarantee’s inclusive nature, which enables financing to be extended to companies lacking sufficient collateral to secure a loan, and on better pricing terms. Gutauskas also highlighted the significance of microfinance for small enterprises with limited collateral, enabling access to funding without any collateral required.

“This programme holds particular significance for companies that prioritise social impact over profit, such as those facilitating sign language translation services or repurposing warehouses into community basketball courts,” said Gutauskas. He said that Faktoro has a pioneering role in the Baltic region by securing guarantees for projects that advance social entrepreneurship.

EIF Chief Executive Marjut Falkstedt said the agreement is timely and well targeted. “We are proud to be supporting Lithuanian businesses with additional financing. What makes the deal especially valuable is Faktoro’s commitment to promoting the growth of social enterprises, in full alignment with the European Union’s goal of supporting initiatives that contribute to a more inclusive future.”

The InvestEU guarantee builds on Faktoro’s funding experience under the European Guarantee Fund (EGF) guarantee aimed at facilitating new financing for businesses dealing with the economic fallout of the COVID-19 pandemic, and the European Union’s Employment and Social Innovation (EaSI) programme guarantee instrument to enhance financial accessibility for microcompanies.

Background information

Faktoro has been operating in the non-banking financing market since 2016. It is one of the pioneers of non-banking financing and one of the largest non-banking financiers in Lithuania, providing exceptional specialised business financing services to small and medium-sized enterprises in the Baltic states and Finland.

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s small and medium-sized enterprises (SMEs) by helping them access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that target this market segment. In this role, the EIF advances key EU policy objectives including competitiveness, growth, human capital and climate action.

The InvestEU programme provides the European Union with long-term financing by mobilising public and private funds for a sustainable recovery. It generates additional investments in line with EU priorities such as the European Green Deal, the digital transition and support for small businesses. A range of EU financial tools is brought together to support investment with simpler, more efficient and more flexible project financing. The programme has three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented via various financial partners. They invest in projects by using an EU budget guarantee of €26.2 billion to mobilise at least €372 billion in extra investments.

Press contacts

EIB Group:
Kristiina Randmaa, tel.: +352 4379 72894 — k.randmaa@eib.org
Follow us on Twitter@eif_eu
Website: www.eif.org — press@eib.org

Faktoro:
Justė Mikelaitė, tel.: +37067549888, juste@faktoro.lt