Translated with DeepL.com
Since the beginning of the year, when collateral requirements for loans up to EUR 100 thousand were abolished or significantly reduced, the development finance institution ALTUM has already received 371 applications for such loans from all regions of Latvia, for a total amount of EUR 13 million. On Wednesday, 27 March, everyone had the opportunity to find out more about the programmes offered by ALTUM for business start-ups and fast-growing companies to successfully develop their business.
The average loan amount requested under this programme is EUR 35 thousand. Applications were received from all regions, but Vidzeme was the most active, with 25% of the total volume of applications. Kurzeme is the second most active region with 19% of applications, followed by Latgale, Riga, Zemgale and Riga City.
If the data is analysed by programme, Small Enterprises in Rural Areas account for 35% of the applications and Working Capital for Farmers 21%. This is due to both the need to cover the previous season's bills and to prepare for the new season. The top 3 in terms of demand for programmes are completed by Start-up loans, which account for 19% overall.
"The economy in Latvia is slowly starting to revive, as shown by the huge interest in funding opportunities and state support. We have hit the top ten with the ALTUM programme, which provides loans of up to EUR 100,000 with reduced collateral requirements, as evidenced by the large number of applications," said Viktors Valainis, Minister of the Economy. "Together we will ensure that growth continues and small businesses make up an increasing percentage of the country's economy."
"One of our goals is to activate lending in the regions, to promote regional growth, and the results of the first months show that entrepreneurs in the regions are really actively using this opportunity - we receive applications from all over Latvia and 75% to 80% of them are from outside Riga and Pierīga," says Reinis Bērziņš, ALTUM Chairman of the Board.
Applications are received from companies in various sectors, such as grain, livestock, construction (roads and buildings), accommodation and catering, furniture, carpentry and joinery, etc. Farmers account for 49% of the applications and other business sectors for 51%.
Jānis Svemps, Senior Client Business Manager of ALTUM Riga Region, said that loans for small and medium-sized enterprises are also in demand, with financing up to EUR 250 000 available, as well as other programmes. He pointed out that business start-ups or owners of fast-growing companies are advised to turn to ALTUM consultants who will help them find the most suitable type of financing, thus also agreeing on the amount needed, the payment schedule and other issues. "We are proud that we have already invested about one billion in business to promote the competitiveness and growth of Latvia as a whole," says J.Svemps.
Linda Ezere, head of the research company Norstat, also spoke at the event, which was aimed at informing entrepreneurs about the possibilities of attracting funding, and presented the results of a study on the mood of business start-ups. She pointed out that although the stress level of entrepreneurs is increasing, independence and the ability to plan their own time and finances are essential prerequisites for building a business.
Rihards Zariņš, Head of the Jūrmala Representative Office of the Latvian Investment and Development Agency, shared his offer at the event and talked about the stages of business incubation, as well as the available funding. Andris Grundulis, Deputy Director of the Rural Support Service, talked about the opportunities and support for the development of regional enterprises.