Loan for Improving Industrial Capabilities

Who can apply

Micro, small, medium, small mid-cap, mid-cap, and large enterprises registered in Latvia that implement projects for military or dual-use products can apply. The enterprise must not have tax debts exceeding 1 000 EUR, must not be in difficulty, and must not have cooperated with Russia or Belarus since 2021.

Maximum support

A loan with a capital rebate is available up to 20 000 000 EUR and a guarantee with a capital rebate up to 25 000 000 EUR.

Share of costs covered

The maximum support intensity in Kurzeme, Zemgale, Vidzeme and Latgale is from 50% to 70%, but in Riga and Pierīga from 30% to 50%, depending on the size of the enterprise.

What can be paid for

• Investments in the construction of new buildings and factories
• Development of infrastructure required for production
• New machinery and equipment
• Land purchase up to 10% of eligible costs
• Intangible assets (patents, licences, know-how, and other intellectual property)

What cannot be paid for

• Value added tax
• Vehicles required to be registered in CSDD or the Tractor Machinery Register
• Land purchase costs exceeding 10% of eligible costs
• Used assets

Key conditions

• Private co-financing of at least 25% without public support
• Investments must remain in Latvia for at least 3 years for SMEs or 5 years for large enterprises
• Manufactured products must be sold to EU or NATO armed forces or approved by the Ministry of Defence
• A special permit (licence) must be obtained for commercial activity with military goods
• Mandatory post-monitoring indicators must be achieved to receive the capital rebate

How to apply

First, an application must be submitted to the Ministry of Defence to obtain an opinion on product conformity. Next, the application is evaluated and ranked by a commission of the Ministry of Economics. After receiving a positive decision, an application must be submitted to ALTUM within two months.