At its meeting on April 8, 2021, the Cabinet of Ministers decided to increase funding for the support program “Microcredit and Loans for Beginners” (hereinafter – the program), allocating an additional 10 mln. euro.
“Good ideas, combined with the necessary funding at the right time, can grow into a viable and profitable company that can successfully continue to develop not only on a national scale, but also on a larger scale. By complementing the start-up support program with € 10 million, we will not only encourage the creation of new businesses, but also enable start-ups to develop and expand their businesses. It should be emphasized that the loan under this program is available not only to existing companies, but also to self-employed persons or if the company has not yet been established. ” indicates Minister of Economics Jānis Vitenbergs.
Currently, 375 business start-ups have been supported under the program and a total of 513 businesses have been supported in the program. The funding available so far from the European Regional Development Fund in the program was 6 mln. euros, but With the additional financing granted, the development financial institution Altum will be able to issue loans to at least 230 more companies this year – for business start-ups and for the development or expansion of an existing business. More about the terms of the program here.
At the same time, given that the negative economic impact of Covid-19 is still being felt by economic operators, companies will have to possibility to extend the total loan term up to 12 months.
More about the approved changes in the Regulations of the Cabinet of Ministers of 31 May 2016 No. 328 “Regulations on microloans and start-up loans” can be found here.
It is envisaged that the regulation will enter into force on the day following its publication in the official publication “Latvijas Vēstnesis”.
Ministry of Economics
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