ALTUM launches a new SME microcredit state support programme
VAS “Latvian Development Finance Institution Altum” (ALTUM) starts to implement a new one this week business State Support Programmein which small and medium-sized enterprises will be able to receive micro-credits up to eur 25 thousand as well as a subsidy to cover interest payments.
The loans will be granted by November 2015 and, overall, within the framework of this programme, 3.5 million euros will be allocated to small and medium-sized non-agricultural enterprises from the European Regional Development Fund (ERDF) and State budget funds for small and medium-sized non-agricultural enterprises.
The maximum amount of the loan in the new SME micro-lending programme is eur 25 000. Loans for investments are available with a maturity of up to 7 years, for working assets up to 5 years. A loan interest payment subsidy of 50% is also available to entrepreneurs. This means that, in fulfilling the criteria laid down, half of the amount due in the interest of the loan will be covered BY ALTUM from THE ERDF resources.
For loans to projects up to 7.1 thousand euro, the borrower's participation is not necessary, while in larger scale projects the entrepreneur must provide at least 10% co-financing.
ALTUM also continues the implementation of the Latvian-Swiss micro-lending programme, which may receive loans up to 14.2 thousand euro with a maturity of up to 5 years. Smaller projects with a total amount of up to 7,1 thousand euros do not require co-financing by the entrepreneur. IN the first half of that year, ALTUM has issued one million euro in microcredit, while EUR 9.7 million has been allocated to entrepreneurs since 2009.
In 2014, ALTUM is carrying out a total of seven business state support programmes for various business needs.
ALTUM (previously mortgage bank) implements State aid programmes, financing the development of small and medium-sized enterprises, promoting entrepreneurship and supporting other business areas with the aim of improving the efficiency of Latvia's economy and thus the level of living of the population. Since 2009, ALTUM has allocated €460 million to various business needs, more than 5700 Latvian entrepreneurs have been supported, existing and created many new jobs.
More information VAS “Latvian Development Finance Institution Altum” website.
Source of information: VAS “Latvian Development Finance Institution Altum”