Start programme (ESF) - support to business start-ups
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- Start programme (ESF) - support to business start-ups
Start Programme
ESF programme "Support to Self-employment and Business Start-ups"
On 31 March, 2009 the Cabinet of Ministers passed Regulations No 293 „Regarding Action Programme “Human Resources and Employment” supplement 1.3.1.2. activity „Support to Self-employment and Business Start-ups””. The regulations lay down the procedure for use of the funds of the European Social Fund (ESF), state and Hipotēku banka totalling to LVL 23 mln (ESF and state finance - LVL 14 mln, Hipotēku banka – LVL 9 mln) for promotion of the start-ups. By July 2013 within the framework of the programme Hipotēku banka will have granted loans to the start-ups of economic activities from the Loan Fund established for this purpose totalling to LVL 17,5 mln. Moreover the programme’s financing for training and consultations is LVL 4 mln, administration and management of the programme – 1,5 mln lats.
On 7 August, 2009Hipotēku banka and Latvian Investment and Development Agency concluded an agreement about implementation conditions and procedure of the programme. The agreement stipulates that the programme will be operational until June 2015 having provided consultations/training to 1200 start-ups, but loans to 600 start-ups.
The purpose of the programmeis to boost the economic activities in the country by developing knowledge and skills of the business start-ups and providing the required financial support to commencing of the business.
The programme provides the business start-ups and newly established companies with an all-embracing support i.e. consultations, training and financing in the shape of loans and grants for starting the business.
Population of giving age, including the unemployed, wishing to start-up a business or self-employment, including newly established businesses, are eligible to support from this programme. In the context of the programme a newly established business is an entrepreneur having registered according to the law not earlier than 3 years before requesting support from the programme.
Entities wishing to start or having already started economic activities within the last year may receive an all-embracing support within the framework of the programme: 1) consultations on drafting and implementation of the business plan; 2) training; 3) financial support - loan up to LVL 54 thsd; grant for sustaining of the economic activities (up to LVL 3,6 thsd, but not more than 35% of the amount of the loan); grant for repayment of loan – up to LVL 2 thsd (but not more than 20% of the loan amount).
Entities having started the economic activities more than a year ago, but not later than 3 years before the application for support is submitted will be entitled to only consultations and loan.
The total loan amount per one business start-up may not exceed LVL 54 thsd, at the same time the start-up must ensure 10% co-financing of the business plan. The sum of the project described in the business plan may not exceed LVL 60 thsd. The programme allows for support to implementation of one business plan only.
The branches of the bank will consult on drafting of the business plan and implementation of the project as well as accept applications for the programme’s support.
The business start-ups lacking theoretical and practical knowledge on the operation of business and drafting of the business plan will be offered the following training modules: business basics; management basics; regulatory framework of business; financial management of company; accounting of the economic activities and taxes; fundamentals of marketing.
For more information about support conditions of the programme click here!
