The information was translated using the ChatGPT service.
By allocating additional EU fund financing and clarifying specific regulatory norms, the Cabinet of Ministers decided in its session on September 5th this year to extend two existing Altum support programs for entrepreneurs until the end of 2029 (or until all the financing available under the programs is reserved):
Portfolio guarantees to promote lending to micro, small, and medium-sized business entities – legal entities.
Guarantees for business operators to improve competitiveness.
"The need to increase productivity, invest in the development of new products, promote the creation of new, well-paid jobs, and expand the geographic scope of export markets is crucial both for ensuring competitiveness and for economic growth. To avoid delaying the development projects initiated or planned by entrepreneurs, we have found a solution to continue the guarantee and portfolio guarantee programs during the EU funds transition period. At the same time, we have also expanded the circle of potential support recipients, providing access to these financial instruments for a broader circle of merchants," emphasized Minister of Economy Ilze Indriksone.
We remind that state support in the form of guarantees is provided to merchants for loans issued by credit institutions for investments, working capital financing, as well as for financial leasing, financial leasing limits, and bank guarantees.
Additional funding of 9,869,476 euros has been allocated for the support program of portfolio guarantees for micro, small, and medium-sized business entities – legal entities, promoting lending (including EU fund financing for the 2021-2027 planning period of 8,389,055 euros and state budget financing of 1,480,421 euros).
Meanwhile, additional funding of 29,608,427 euros has been allocated for the support program for guarantees for business operators to improve competitiveness (including EU fund financing for the 2021-2027 planning period of 25,167,162 euros and state budget financing of 4,441,265 euros).
In both support programs:
The current circle of support recipients, which can be supported using EU fund financing, has been expanded to include small medium capitalization companies and medium capitalization companies.
The list of unsupported sectors has been updated to include land acquisition if the amount exceeds 10% of the respective business's total allocable expenses, or in relation to abandoned areas and former industrial areas with buildings, this restriction is increased to 15% of the guaranteed financial service amount.
Simultaneously, the individual guarantee program has been supplemented with support activities, providing special support in the form of guarantees for digitization and automation, while also increasing the maximum guarantee amount to 7 million EUR for small and medium merchants.
It is planned that by December 31, 2029, 310 companies will be supported under the guarantee program, attracting private investments of 130 million euros, while a total of 235 companies will be supported under the portfolio guarantee program, attracting private investments of 110 million euros.
So far, under the Altum guarantee program, a total of 832 merchants have been supported with a total guarantee amount of more than 199 million EUR. In terms of transactions, 30% are in the processing industry, 29% of the guarantee portfolio consists of transactions in the trade sector, 28% in the wholesale and retail sectors, and 27% in the construction sector. Since the start of the Portfolio Guarantee Program in 2017, a total of 1,130 merchants have been supported, with guaranteed loan amounts totaling 62 million EUR.
Detailed information about the regulations approved by the government today can be found on the Legal Acts portal:
