Loan for Improvement of Industrial Capacities

Who can apply

Registered micro, small, medium-sized, small mid-cap, and mid-cap enterprises in Latvia implementing military or dual-use product projects can apply. The company must not have tax debts exceeding EUR 1,000, must not be in financial difficulty, and must not have cooperated with Russia or Belarus since 2021.

Maximum support

Loan with a capital discount of up to EUR 20,000,000, or a guarantee with a capital discount of up to EUR 25,000,000.

Share of costs covered

The support intensity is from 30% to 70% of eligible costs depending on company size and region. In Riga and Pierīga it is 30% to 50%, but in Kurzeme, Zemgale, Vidzeme and Latgale – from 50% to 70%.

What can be paid for

• Tangible assets (new buildings, structures, new factories)
• Development of manufacturing infrastructure
• New manufacturing machinery and equipment
• Intangible assets (patents, licences, know-how, intellectual property)
• Land acquisition (up to 10% of total eligible expenditure of the relevant activity)

What cannot be paid for

• Value added tax (VAT)
• Vehicles requiring registration with CSDD or the tractor machinery register
• Land acquisition costs exceeding 10% of eligible expenditure

Key conditions

• At least 25% co-financing of eligible costs must be provided from own resources without any public support
• Investments must be retained in Latvia for at least 3 years (SMEs) or 5 years (mid-caps and large enterprises)
• Specified post-monitoring indicators (turnover, salaries, jobs) must be achieved after project completion to apply the capital discount
• A special permit (licence) from the Ministry of Defence must be obtained for military goods production

How to apply

The applicant first submits an application to the Ministry of Defence to obtain an assessment. Following this, the application is evaluated and ranked by a Ministry of Economics commission. Within two months of a positive commission decision, the company submits its application to ALTUM.