Covid-19-affected businesses can apply for ALTUM support programs as of today

Both support instruments have been developed in collaboration with the Ministry of Economics and approved by the European Commission. The guarantees for bank loan holidays will enable banks to postpone principal loan payments for up to two years, and the current asset loans will be granted on favorable terms to businesses whose operations have been substantially reduced. 

ALTUM Management Board Chairman Reinis Bērziņš:

“We, ALTUM, together with the government and banks are ready to provide swift assistance to businesses to help them cope with the difficulties caused by the negative impact of Covid-19. The combined positive effect of the new financial instruments on the economy will exceed EUR 900 million. Thinking about clients’ conveniences and adapting to the new circumstances, we have set up a call center to remotely provide consultations about the two new ALTUM support programs for the Covid-19-affected businesses. Meanwhile, all other support instruments provided by ALTUM are also available to entrepreneurs, including financing to startups, financing to SMEs of various caliber, loans for buying agricultural land, services of the Land Fund and others.” 

The EUR 50 million* guarantee scheme for bank loan holidays will allow banks to restructure more than EUR 700 million worth of loans. Meanwhile, the current asset program will allow to provide EUR 200 million in loans to businesses who in the current situation experience shortages of working capital necessary for their daily operations.

Important:

• The guarantees for bank loan holidays and current asset loans are only meant for businesses affected by the Covid-19 crisis.
• To receive ALTUM support, a company has to be viable in the long term and able to prove that the support will help it survive the crisis and successfully continue business operations.
• Entrepreneurs have to inquire about the guarantees for loan holidays at their banks. Likewise, they have to consult their banks about the current asset loans. If the bank refuses the loan, entrepreneurs have to turn to ALTUM.
• ALTUM call center will be providing services on weekdays from 9:00 to 18:00. Phone: 26655309, email: info@altum.lv.
• The call center only provides consultations about the support programs offered by ALTUM. Inquiries about other kinds of assistance in connection with the Covid-19 crisis have to be made by calling round-the-clock helpline 8345 set by the State Chancellery in collaboration with Tet.

 On ALTUM guarantees for loan holidays:

• The guarantee will be granted if the company is economically viable and its credit institution has confirmed that the liquidity support is necessary as a result of the Covid-19 impact.
• The financing is available to SMEs, as well as large enterprises, including in the agricultural and fisheries sector.
• The guarantee will cover 50 percent of the financial service (balance at the moment the guarantee is granted).
• The maximum term is 6 years for investment loans and leasing and 3 years for current asset loans. 
• The total value of the financial service covered by the guarantee does not exceed 25 percent of the company’s 2019 turnover, and the maximum sum does not exceed EUR 5 million.
• The guarantee will be provided for new and existing current asset loans, if the credit institution agrees to extend the loan agreement, as well as for existing investment loans and financial leasing, if the credit institution postpones the repayment of the principal amount for two years, and if necessary, extends the loan agreement.
• The guarantee is meant for all business branches, at the same time taking into consideration sectorial support restrictions set by the government (for example, gambling, finance brokerage, arms trade, etc.)
• The guarantees will be provided until December 31, 2020.

On ALTUM current asset loan:

• The loan will be granted if the company is economically viable and able to prove that the support is necessary because of the Covid-19 impact, as well as that the additional financing will help the company recover and successfully continue its business operations.
• The financing is available to SMEs, as well as large enterprises, including in the agricultural and fisheries sector.
• The value of the loan is up to EUR 1 million but it must not exceed 1) 25 percent of the company’s 2019 turnover (including social security contributions), or 2) double the amount paid by the company in salaries (including social security contributions) in 2019, or 3) the reasonable level of liquidity necessary to ensure operations for the next 12 months.
• The term of the loan is 3 years. The start of its repayment can be postponed by up to 12 months.
• Loan security requirements have been significantly eased, taking into consideration the company’s assets, and the interest rate has been reduced as well.
• The loans will be provided until December 31, 2020.

Clients can file their applications for financing available under the state support programs and necessary documents only electronically at mans.altum.lv. For consultations please call 26655309 on weekdays from 9:00 to 18:00.