Translated using ChatGPT service.
On Tuesday, 26 August, the government adopted regulations developed by the Ministry of Economics, which will ensure higher support intensity for business incubation enterprises and set additional conditions for more effective absorption of funding.
The regulations will also define how the Investment and Development Agency of Latvia (LIAA) can receive the necessary information from state information systems, databases, and registers to the extent required to implement the support programme and provide assistance to the final beneficiaries. This is stipulated in the government-approved “Amendments to Cabinet Regulation No. 407 of 13 July 2023 ‘Implementation rules for measure 1.2.3.1. “Support for the development of innovative entrepreneurship in SMEs” of the specific objective 1.2.3 “Promote sustainable growth, competitiveness, and job creation in SMEs, including through productive investment” of the European Union Cohesion Policy Programme 2021–2027’.”
“With these amendments, we are significantly expanding support opportunities for business incubation enterprises. The increased level of support means that entrepreneurs will be able to develop their ideas faster and more securely, attract the necessary resources, and create new jobs,” said Minister of Economics Viktors Valainis.
The regulations will allow raising the support intensity threshold from 50% to 70% for business incubation enterprise services related to business development, rental of premises and workplaces, acquisition of production equipment and machinery, as well as one state-set minimum monthly wage and mandatory state social insurance contributions for up to two employees. Meanwhile, for the purchase of raw materials and inputs, the support intensity threshold will be increased from 30% to 70%.
The permissible tax debt threshold for all enterprises will also be raised from EUR 150 to EUR 1000, thereby promoting better planning of enterprises’ internal financial resources and reducing the administrative burden in the implementation of the support programme.
In addition, the amendments provide LIAA with the right to request and receive free direct access to data in state information systems to the extent necessary for evaluating final beneficiaries and providing support.
The new regulations will apply to eligible activities submitted for support that are approved after the date these amendments enter into force and will not apply to financial support applications already received from enterprises.
It is planned that on 8 September a new call for applications will be announced, under which support will be granted in accordance with the new rules.