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Investment loans with a capital discount for enterprises

Support institution: Investment and Development Agency of Latvia (LIAA), JSC Development Finance Institution Altum
Funding source: State Aid

Construction Site

Project submission:

The round is over.

Objective:

Supporting the implementation of viable business projects for enterprises, promoting their development, competitiveness, increasing the volume of exports, providing financing for projects aimed at introducing new equipment and technological processes.

Grant applicant:

  • A medium-size or large enterprise registered in Latvia:

  • who is planning an investment project with an investment of at least EUR 10,000,000 (the project cannot have been launched before the loan application is submitted to the LIAA);

  • who is not undertaking in difficulty;

  • who has no tax debt larger than EUR 1,000 (except there is agreed tax repayment timetable).

Sectors to be supported:

  • Knowledge – intensive bio-economy;

  • Biomedicine, medical technologies and bio-pharmacy;

  • Photonics and smart materials, technologies and engineering systems;

  • Smart energy and mobility;

  • Information and communication technologies;

  • Tourism, culture and creative industries*. 

* Cultural and creative industries include: architecture, design, film, performing arts, visual arts, music, publishing, television, radio and interactive media, advertising, computer games and interactive software, cultural heritage, cultural education, leisure, entertainment and other cultural activities

Eligible actions:

  • Start of production and provision of services;

  • extension of business activity;

  • diversification of production with product not previously produced;

  • significant changes in the production process.

Amount and intensity of aid:

  • State aid - 70 000 000 EUR available under this round of support

  • Aid – capital discount till 30% from investment that is provided in form of writing off principal amount of loan (capital discount cannot exceed EUR 10,000,000).

Grant applicant - Medium or large enterprise:

Eligible costs (EUR): 10,000,000 - 33,400,000

Intensity of aid: 30%

Amount of aid (EUR): 3,000,000 – 10,000,000

Form of support:

The aid is granted in the form of an Altum loan with the following criteria:

  • the amount of the loan is at least in amount of aid (or 30% of the investment);

  • the purpose of the loan is the introduction of new equipment and technological processes in production or in provision of services, including introduction of new products in production;

  • the loan supports the activities of the enterprise in line with EU objectives relating to green and digital transformation, in EU targets to achieve climate neutrality by 2050;

capital discount or partial withdrawal of principal takes place in three equal parts (one third per year) after the project has been carried out if the criteria for receiving aid are reached.

Criteria for receiving aid:

The loan is discounted over a period of 3 years after the project implementation in three equal parts if the enterprise fulfills the following criteria:

  • the average monthly gross wage for employees is at least 1,3 times higher than the average monthly gross wage in the region in the previous year;

  • the volume of exports of goods or services > EUR 3 600 000;

  • the investment project has resulted in the creation of one full – time job for every EUR 250,000 of capital discount, and a total of at least 12 new full – time jobs have been created;

  • following the implementation of the investment project, investment in research and development shall be at least EUR 250,000 in year.

Application arrangement:

  • The enterprise shall submit an application together with other documents to be submitted for the assessment of the request for funding of the LIAA and ALTUM;

  • LIAA shall carry out initial assessment of the application and the documents submitted in accordance with their competence, rank the projects and take a decision on the approval of the application and the right to receive an evaluation of the application for funding  in ALTUM;

  • ALTUM evaluates the viability of projects and compliance with the conditions of the programme, enters into a contract for the granting of a loan with a capital discount.

List of documents to be submitted:

  • Completed LIAA application form;

  • Completed ALTUM application form;

  • Other documents that the Applicant considers necessary for the qualitative evaluation of the application.

Mēs piedāvājam:

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