ALTUM loans throughout Latvia exceed eur 8 million this year, business activity in Latgale grew by 8%

In the first nine months of that year, the development finance institution ALTUM has granted more than eur 8.2 million to business start-ups in the first nine months of that year, which is the largest volume over the past five years. Compared to the nine months of 2017, both the total number of loans issued and the increase in the amount of funding granted are 40%.
The activity of new entrepreneurs through State aid programme loans grew in all regions of Latvia. The largest increase in the number of loans in 9 months of that year is fixed at Zemgale (+451 TP1T), while a large increase in the total amount of supported business projects is Vidzeme (+891 TP1T), Zemgale (+691 TP1T) and Kurzeme (+601 TP1T), which shows the implementation of larger business ideas. The activity of entrepreneurs through State aid has also increased in Latgale (the number of loans has increased by 8%), while slightly decreasing the total amount of financing granted, which shows that new entrepreneurs in this region are starting a business with smaller scale projects. The opposite scene is in Riga and Pierīga region, where the total amount of funding granted has increased by 26%, but the number of projects has decreased by 7%.
In total, 400 loans to entrepreneurs from sectors such as catering, guest accommodation and various other services (34%), production (28%), agriculture, forestry and fisheries (15%), trade (12%), construction (9%) and transport services (2%) have been issued during the first 9 months of this year.
Vita Pučka, Head of ALTUM Latgale Region:
“We are pleased that the activity is growing in Latgale: more and more entrepreneurs are using the broad state aid programmes implemented BY ALTUM. I would like to encourage entrepreneurs not to be afraid to start or develop their business projects, as several entrepreneurs in the region have shown that good ideas in combination with the necessary funding at the right time become a viable and profitable company with successful activities not only in the country but also on a broader scale."
One of the regional success stories that started business with ALTUM in Latgale is “LATSTAB”. The Rēzekne-based company, which produces poles, faced a variety of challenges at the beginning of the business path, however, by investing persistent work and attracting the necessary funding, currently 95% of the goods produced are exported to Ireland and also to African countries. The company's manager, Staņislavs Ratinskis, believes that the success of a businessman is a communication with all the parties involved in the business – this helps to attract additional investments, identify customers' wishes, as well as motivate their team to conquer increasingly new peaks outside of national borders. More information on the story of “LATSTAB” is available IN THE ALTUM YouTube channel “courage stories”.
More information on the statistics on loans issued to business start-ups, their size throughout Latvia is considered IN ALTUM social networking accounts – Facebook, Twitter, LinkedIn.
Business initiators may receive up to eur 150 000 in loans, with a repayment term of up to 10 years, acquisition of real estate, construction and renovation projects - up to 15 years. A loan of up to 7 thousand euro is available without co-financing of the borrower, above that amount with CO-financing OF 10%. More information about support for business starters here.
As of August of that year, customers may submit applications for funding of State aid programmes and documents necessary for this only electronically. At the same time, the number of documents to be submitted has also been reduced to customers.
About ALTUM
The development finance institution ALTUM is a Latvian state-owned capital company that provides support to certain target groups in the form of financial instruments with the aid of State aid financial instruments (loans, guarantees, investments in venture capital funds, etc.), complementing it with non-financial support (consultancy, mentoring) as well as selling other State delegated functions within the framework of specific programmes. In June 2017, ALTUM received the international credit rating company Moody's long-term credit rating for Baa1 State capital company, which confirms ALTUM's stable financial situation. In turn, ON October 24, 2017, ALTUM's bonds were ̧ into a regulated market - the Nasdaq Riga Baltic para list.