In Latvia, state funds are channelled to support businesses through the state development finance institution ALTUM.
State loans by the state development finance institution ALTUM
- Small, medium-sized and large enterprises facing financial difficulty due to COVID-19 spread may apply for loans to finance their working capital with subsidized/lower interest rates and decreased security requirements of up to EUR 1 million per company, a maximum term of 3 years and a grace period of 12 months for payment of the principal amount. The total amount of financing available for the said loans is EUR 200 million.
- The total loan cannot exceed at least one of the following criteria:
- 25% of the company’s turnover in 2019;
- double the size of labour costs (incl. social contributions) in 2019 (if the company was founded in 2019, the planned amount for the next 2 years);
- the amount of liquidity required to ensure the operation of the company for the next 12 months.
- The loan is not accessible to companies operating in specific fields (e.g. the arms and ammunition trade, tobacco and alcohol trades, gambling, finance and insurance, real estate operations).
Loan guarantees by ALTUM
- Small, medium-sized and large enterprises facing financial difficulty due to COVID-19 spread may apply for guarantees to secure:
- existing loan obligations (investment loans, financial leasing), by postponing the payment of principal for up to 2 years, or
- new loans for working capital for up to 3 years.
- Maximum amount of guarantee: EUR 5 million per company and up to 50 % of the loan obligation.
- Maximum term: 3 years for working capital financial services, and 6 years for investment loans and financial leasing services.
- State loans and guarantees cannot be obtained by companies that were experiencing financial difficulties already before 31 December 2019.
- The total amount of financing for the guarantees is EUR 50 million and it will allow to restructure loans for the total amount up to EUR 700 million.