"We are providing soft values to meet the concerns of female entrepreneurs," said Siv Hellen, senior vice president and general counsel of NIB. "Thanks to the efforts of this program women get attention, feel important and get treated better when they reach the bank."
The new funds will bring the total investment in Baltic businesswomen to 9 million euros.
The previous investment of 1 million euros was split evenly across the three Baltic states and was disbursed to 44 projects of varying nature.
In Lithuania, the loan facility was distributed across 12 projects.
"I think it is important to raise the self esteem of women and maybe get the general public to think of females as entrepreneurs," said Hellen.
Through access to loans, women entrepreneurs throughout the Baltics were encouraged to expand their businesses, and in some cases even cross-boarder expansions were made.
"There has been a lot of discussion as to whether women need special financial programs," said Hellen. "But for many banks they are a forgotten target group."
In Lithuania the loan will be administered by two banks, UAB Sampo Bankas and AB Siauliu Bankas. Finland's Ministry of Foreign Affairs is also supporting the program with technical assistance funds.
Women entrepreneurs can apply for loans of up to 50,000 euros.
Hellen stressed that those applying for funds do not have to own a business, but they need to be an executive involved in the decision-making process.
She also stressed that the loans are not subsidized.
"We provide funds at highly competitive interest rates to the banks which will assume the risk. We hope the end user will get favorable rates from the banks, because our marketing is aimed at reaching out to a group that might not otherwise come to the banks on their own," she added.
The first loan funded projects in a variety of sectors that included chemical and furniture manufacturing, high tech, pharmaceutical, retail, law and dental offices, a beauty salon and a consultant group focused on women managers.
Part of the aim of the second loan facility in Lithuania is to reach out to women in smaller cities and rural areas.
This is why NIB, in conjunction with the Council of European Development Bank in France, opted to administer the loans through small, commercial banks that afford access to a broader range of candidates.
Hellen concluded that "it is sometimes tough to overcome the stereotype that women should stay at home, but it is possible to combine a home life with a business life. We encourage all kinds of business and professional connections between Baltic and Nordic women through this program."
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