Since the beginning of the year, when collateral requirements were either eliminated or significantly reduced for loans up to 100 thousand euros, the development finance institution ALTUM has received 371 applications for such loans from all regions of Latvia, totaling 13 million euros. On Wednesday, March 27, there was an opportunity for all interested parties to learn more about ALTUM's programs for start-ups and rapidly growing companies to successfully develop their businesses. The average requested loan amount in this program is 35 thousand euros. Applications have been received from all regions, with Vidzeme being the most active, accounting for 25% of the total volume of applications. The second most active region is Kurzeme with 19% of the applications, followed by Latgale, Riga, Zemgale, and the city of Riga.
Analyzing the data by program, 35% of the applications are from Small businesses in rural areas, while 21% are for working capital for farmers. This is related to the need to cover bills from the previous season and to prepare for the new season. The top three requested programs include "Startup" loans, which in total make up 19%.
"The economy in Latvia is gradually beginning to recover, as evidenced by the huge interest in financing opportunities and state support. We have hit the mark by creating an ALTUM program that offers loans up to 100 thousand euros with reduced collateral requirements, as evidenced by the high number of applications," says Minister of Economics Viktors Valainis, "together we will ensure that growth continues and that small business forms an increasingly large percentage of the national economy."
"One of the goals is to activate lending in the regions, to promote regional growth specifically, and the results from the first months confirm that entrepreneurs in the regions are actively using this opportunity – we receive applications from all over Latvia, and 75% to 80% of them are from outside Riga and its surrounding area," says ALTUM's Board Chairman Reinis Bērziņš.
Applications are received from companies representing various sectors, such as grain farming, livestock, construction (roads and buildings), accommodation and food service activities, furniture, carpentry, and joinery product manufacturing, among others. Farmer applications account for 49%, while other business areas make up 51%.
ALTUM's Senior Client Business Manager in the Riga region, Jānis Svemps, mentioned that loans are also in demand for small and medium enterprises, which can receive funding up to 250 thousand euros, among other programs. He pointed out that business start-ups or owners of rapidly growing companies are advised to consult with ALTUM consultants, who will help find the most suitable type of financing, thus agreeing on the necessary amount, payment schedule, and other issues. "We are proud that approximately one billion has been invested in business to thereby promote competitiveness and growth across Latvia," says J.Svemps.
At the event, aimed at informing entrepreneurs about financing opportunities, Linda Ezere, the head of the research company "Norstat," also spoke, introducing attendees to the study results regarding the mood of business start-ups. She noted that, while the stress level among entrepreneurs is increasing, independence and the opportunity to plan their own time and finances are essential prerequisites for creating a business.
Additionally, Rihards Zariņš, the head of the Latvian Investment and Development Agency's Jūrmala representation, shared information about business incubation opportunities and available funding. Meanwhile, Andris Grundulis, the Deputy Director of the Rural Support Service, discussed development opportunities and support for regional businesses.
About ALTUM: Development Finance Institution ALTUM is a state-owned capital company that, with the help of state support financial instruments, provides support in the form of financial instruments (loans, guarantees, investments in venture capital funds, etc.) within specific programs, complemented by non-financial support (consultations, mentoring), and implements other state-delegated functions. In June 2017, ALTUM received the international credit rating agency Moody's long-term credit rating of Baa1 for a state-owned capital company, confirming ALTUM's stable financial situation. On October 24, 2017, ALTUM bonds were included in the regulated market - the Nasdaq Riga Baltic Debt Securities list. ALTUM received the Nasdaq Baltic Awards 2019 award in the nomination "Stock Exchange Event of the Year in Latvia."
Additional information: Sandra Eglīte ALTUM Public Relations Manager T: 26577810 sandra.eglite@altum.lv
