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Financing (loans / grants)

 

The loan officers of the Bank will examine the submitted business plans and using pre-determined evaluation criteria (for example, assessment of knowledge of the business start-ups, business idea and market assessment, economic implementation feasibility of the idea, assessment of the planned cash flow indicators, a.o.) select the best, most viable projects and give loans (up to LVL 54 thsd)  and grants for implementation of the projects.

Loans:

The programme will support projects up to LVL 60 thsd. For those projects where the loan amount exceeds LVL 5 thsd, the applicant has to provide 10% co-financing which may be own resources or external financing not related to any business support funds.

Start loans up to LVL 54 thsd will be granted for investments and working capital for a tenure up to 8 years, with a fixed interest rate of 7-11%, or 6 months RIGIBOR+0% up to 4%. The loan collateral is the property of the company as an aggregate of things, including the fixed assets procured using the loan and owner’s guaranty. For the loans exceeding LVL 17.5 thsd the loan amount can not exceed 135% of the value of collateral offered (note that the collateral value is less than the price of purchased property). Collateral value is the approximate price (excluding VAT) for a given property in a reasonably short period can be sold on the secondary market).

Grants:

The grants for sustaining of the economic activities are available to entities wishing to start or having already started economic activities within last year. These grants will be disbursed within one year after signing of the loan agreement. The amount of the grant - 35% of the granted loan amount, but not more than LVL 3,6 lats. For the next 12 months the client will have access to 1/12 of the grant each month.

Grant for repayment of the loan will be given only upon successful implementation of the project provided all measures named in the business plan have been fully introduced and loan used in compliance with the stated purpose. The maximum amount of the grant is LVL 2 thsd but not exceeding 20% of the loan for entities wishing to start or having already started economic activities within last year and not more than 10% of the loan for entities having started the economic activities more than a year ago, before the application for support is submitted.