The information was translated using the ChatGPT service.
On December 11th, 2023, the third round of project selection commenced for the state support program providing loans with a capital discount for the implementation of large investment projects to enhance the competitiveness of large and medium-sized enterprises. Additional state budget funding of EUR 70 million has been allocated to continue state support for entrepreneurs implementing large investment projects.
Evidence of the ongoing involvement of entrepreneurs in the support program confirms its necessity for boosting the productivity, export capacity, and competitiveness of companies. The government's commitment to continuing state support for large investment projects is a testament to a sustainable national stance and the ability to create effective incentives for sustaining economic activity and future development," emphasizes Minister of Economics Viktors Valainis.
It is planned that with the state's investment of EUR 70 million in support, entrepreneurs will annually make investments of at least EUR 200 million in the Latvian economy, creating at least 600 new regionally above-average paying jobs. This initiative is expected to ensure an export growth of at least EUR 130 million per year starting in 2026 and investments in research and development of at least EUR 8 million per year. The return on the state's investment in taxes is expected within 10 years.
In the third round of project selection, greater emphasis will be placed on creating added value, the volume of exports generated by the investment project, the amount of entrepreneurs' investments in research and development, as well as the implementation of investment projects in regions. Additionally, the range of potential beneficiaries has been expanded to include the tourism and cultural and creative industries sectors, the project evaluation process has been improved, and other support conditions have been clarified.
The program is implemented by the Investment and Development Agency of Latvia (LIAA) and ALTUM. Entrepreneurs are invited to submit applications for state-supported loans with a capital discount through both the LIAA-managed national business development platform (https://business.gov.lv/) and ALTUM (https://mans.altum.lv/). The selection process will last for three months until March 11, 2024.
To inform entrepreneurs about the support for loans with a capital discount program and the conditions of the third round, a webinar will be held on December 14th at 12:00 PM. The webinar will be attended by the State Secretary of the Ministry of Economics Edmunds Valantis, ALTUM Chairman of the Board Reinis Bērziņš, and the Acting Director of LIAA Iveta Strupkāja. Entrepreneurs will have the opportunity to learn more about the program's conditions and application procedure through the online broadcast on the Facebook pages of the Ministry of Economics, ALTUM, and LIAA.
As part of the Loan program, entrepreneurs can receive state support for large investment projects (those planning to invest at least EUR 10 million) in the form of a combined financial instrument. Entrepreneurs have access to a loan with a capital discount, i.e., after meeting certain criteria, the loan amount is reduced by 30% of the eligible costs, but no more than EUR 10 million. After each post-monitoring year, one-third of the amount of the ALTUM loan can be reduced. In addition, entrepreneurs will have the opportunity to apply for an additional loan from ALTUM up to EUR 30 million.
To date, within the framework of the support program, ALTUM has approved 12 positive decisions on support totaling EUR 260.4 million for eligible costs and EUR 69.9 million for the applied capital discount. At the same time, ALTUM continues to evaluate 10 more investment projects with a total investment amount of EUR 221.5 million and an applied capital discount of EUR 63.9 million, which could potentially apply for an additional loan. Approved investment projects will be implemented in Riga, Pieriga, Zemgale, Kurzeme, and Latgale in the wood processing, metal processing, food products, data processing, textile, pharmaceutical raw materials, sheet glass, and fiber cement product manufacturing sectors.
Detailed conditions for the third round of the Investment Fund's loan program are included in the amendments to the Cabinet of Ministers Regulations No. 503 of July 6, 2021, "Regulations on Loans with a Capital Discount for Investment Projects of Entrepreneurs to Promote Competitiveness."