Loan To Start A Business

The aim of the loan is to facilitate engagement of Latvian inhabitants in business

Purpose: investments and inventory
Amount: from 2 000 to 150 000 EUR
Term of up to 10 years; for projects related to the purchase, construction and renovation of immovable property - up to 15 years
Annual interest rate: fixed 3–7% + the resources fee of the State Treasury
Owner contribution in the project:
- loan up to 7 000 EUR – 0%
- loan more than 7 000 EUR – 10% of the project amount (financing not related to state aid)
Pledge: property of the company as a collectivity of things, including fixed assets acquired using the loan. Another property and owner’s guarantees can serve as an additional security:
- up to 25 000 EUR, the acquired object serves as a pledge
- more than 25 000 EUR, the value of pledge has to be at least 74% or more of the loan
- private guarantee: depending on the value of pledge 30% or 100% of the amount of granted loan
An entrepreneur do not have to establish a company to validate availability of a loan
Aid is provided as de minimis support in line with Commission Regulation (EU) No. 1407/2013 of 18 December 2013. Cabinet of Ministers Regulations No. 328 as of 31 May 2016 “Regulations on Micro-Loans and Loans-to-Start” are the provisions regulating the programme.