In 2026, €40 million from the Ministry of Economics budget will be allocated to financial instrument investment projects that will support the operation of loan programs. It is expected that, under these support programs, the total investment by businesses in Latvia will reach approximately €800 million.
Entrepreneurs will have the opportunity to receive support of up to €10 million per project, including a loan with a capital discount of up to 30% of eligible project costs. Once certain performance indicators are met, the capital discount may be applied at 100% of the loan principal, thereby enhancing business competitiveness. The loan term can be up to 20 years.
After completing the investment projects, to receive the capital discount, businesses must, over three consecutive years, create and maintain new well-paid jobs or increase salaries for existing positions, achieve revenue growth, and invest in research and development. The program is also intended for exporters.
On 20 November 2025, the fourth round of applications for the loan with a capital discount was launched. Applications will be accepted until 20 February 2026. This program, with a total budget of €67 million, is designed to support the implementation of significant investment projects.
The loans are aimed at medium and large companies planning investments of at least €10 million in company growth.
The new program provides a support intensity of 30% of eligible costs, with up to €10 million available per project. Eligible projects include companies in general economic sectors, including military industries, as well as investment projects in primary agricultural production.
The results of the first three rounds of the loan program demonstrate its significance for the Latvian economy:
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State support: €176.5 million
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Created 1,305 new jobs
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Annual export increase: €400 million
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Investment in R&D: €18.7 million
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Each euro invested returns 15.4% to the state budget in taxes
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Each export euro generates 14.2% in taxes for the state
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Each new job with average salary contributes €12,000 annually to the state budget in taxes
In the fourth round of the major investment program, the scope of potential beneficiaries has been expanded. A key novelty is the inclusion of defense sector and dual-use projects, which may receive priority in certain cases to strengthen national security and military industry development capacity. For the first time, primary agricultural production is included, allowing capital discounts for investments in modern, climate-neutral technologies and production solutions, enhancing sector competitiveness.
Supported project sectors also include: photonics and advanced materials; technology and engineering systems; smart energy and mobility; biomedical and medical technologies, pharmaceuticals; knowledge-intensive bioeconomy; information and communication technologies; tourism, culture, and creative industries.
Contracts for support in the first three rounds have been signed by companies such as: CEWOOD, Stiga RM, Olpha, Krauss, Avoti, Vudlande, Verems, Stiga RM WWCB, Hornbaek Baltic, Rettenmeier Baltic Timber, Baltic Dairy Board, Brabantia, Forevers, ASNS Ingredient, Valmieras stikla šķiedra, TET, Pet Science Develop, Lūsēni, ERCON, Liepojos kopos.
The program has been operating since 2022, offering ALTUM loans with a capital discount of up to 30%, focusing on production, technology, innovation, and competitiveness enhancement. With the new Cabinet of Ministers regulations, the loan program has been expanded and improved to better address competitiveness promotion and security challenges.
On 4 December, the Saeima adopted the 2026 budget in the second and final reading. The Ministry of Economics budget includes approved expenditures of €182 million, including €115.1 million for state core functions and €66.9 million for the implementation of foreign aid projects. Most of the budget funding—€152.1 million—is allocated to various support measures to promote business competitiveness and economic growth, namely attracting investments, supporting innovation, and enhancing export capacity.