Small Loans in Rural Areas with Capital Rebate
Programme is co-financed from the European Agricultural Fund for Rural Development (EAFRD) and beneficiaries have to comply with visibility requirements.
The programme provides ALTUM financing for investment projects in agriculture and agricultural product processing in rural areas. It supports farm development, competitiveness, diversification and the introduction of new products. After successful project implementation, a capital rebate of up to 50% of the loan amount, capped at EUR 100,000, may be granted.
Who can apply?
- Farmers and agricultural product processors;
- Young farmers starting or developing agricultural activities;
- Businesses with annual turnover of up to EUR 250,000 in the most recently completed financial year (excluding grants and other public support).
Eligible projects
- Establishment and expansion of farms by young farmers;
- Diversification or restructuring of agricultural activities (investments are limited to the following sectors: fruit and vegetable production (including greenhouse production), beef cattle farming, sheep and goat farming, pig farming, poultry farming, beekeeping and rabbit farming);
- Production of new food and beverage products through new technologies or production equipment.
Key terms
Minimum loan amount for young farmers: 20 000 EUR
Minimum loan amount for other projects: 50 000 EUR
Maximum loan amount: 250 000 EUR
Capital rebate: up to 50% of the loan amount, up to EUR 100,000
Eligible area: all rural areas of Latvia (excluding 10 largest cities)
What can be financed?
- Purchase of land;
- Agricultural machinery and equipment;
- Production equipment and technological lines;
- Construction, reconstruction and acquisition of buildings;
- Livestock and plants;
- Related construction and design costs;
- Non-recoverable VAT.
Additional benefits:
Sustainable projects may qualify for a reduced interest rate.
Businesses in Augšdaugava, Alūksne, Balvi, Krāslava and Ludza municipalities may be eligible for a temporary 0% interest rate period under specific conditions.
Programme is co-financed by the European Agricultural Fund for Rural Development (EAFRD).