Cabinet of Ministers Regulations No. 613 Riga 2 august 2011 (pr. No 46 42) provisions on the mezzanine capital loans business competitiveness of operators Issued pursuant to the Cabinet of Ministers Act article 31 equipment, first paragraph, point 3 i. General questions 1. determines the conditions for granting the aid loans in the form of mezzanine capital business competitiveness of operators.
2. the provisions of This framework of mezzanine capital loan (the loan) is a long-term loan with increased credit risk. It is subordinated to the credit institutions to provide long-term loans and is reinforced by a lower security than credit cards loans.
3. Loans to provide the limited liability company "Latvian guarantee agency" (hereinafter referred to as the Latvian guarantee agency).
4. within the meaning of this provision the operator of economic activities is a merchant and agricultural service cooperative society business and agricultural service cooperatives for regulatory action within the meaning of the Regulations Act.
5. the total amount of the loan is 17 738 557 lats.
6. Loans provided as regional aid for investment in accordance with the European Commission of 6 august 2008. Regulation (EC) No 800/2008, which recognize certain categories of aid compatible with the common market in application of articles 87 and 88. (General block exemption regulation) (text with EEA relevance) (Official Journal of the European Union, august 9, 2008, no L 214) (hereinafter Regulation No 800/2008).
7. This provision within the meaning of the small and average economic performer is the economic operator who satisfies the provisions of Regulation No 800/2008 annex 1 definitions. The meaning of these rules the big economic performer is the economic operator who does not comply with Annex 1 of the said regulation the definition laid down in
8. Lending arrangements shall be determined in accordance with the civil law contracts concluded between the Latvian guarantee agency and economic analyst or credit institution.
II. non-eligible activities and sectors, economic agents is not granted such Loans 9 activities and sectors: 9.1. Regulation No 800/2008 article 1 set out in paragraph 2;
9.2. Regulation No 800/2008 article 1 set out in paragraph 3;
9.3. the arms and munitions production and trade;
9.4. the tobacco production and trade;
9.5. the production and marketing of alcohol;
9.6. gambling and betting;
9.7. financial and insurance activities;
9.8. operations with real estate;
9.9. wholesale and retail to;
9.10. automotive and motorcycle repair;
9.11. vehicles, machinery and equipment, personal effects, household hardware and equipment rentals;
9.12. catering services;
9.13. duplication of computer software; motion picture, video, television programs and sound recording production; radio and television programming and broadcasting; telecommunications;
9.14. Professional, scientific and technical services, except research and experimental recording developments in science and engineering performance;
9. Administrative and operating services;
9.16. education;
9.17. health and social care;
9.18. arts, entertainment and recreation;
9.19. social, political and other organisations; computer, personal items and household supplies for the repair; the rest of the individual for the provision of the services;
9.20. households as employers;
9.21. vehicle and transport equipment the purchase of operating workers operating in the transport sector;
9.22. electricity and heating, except if the implementation of a project co-financed by the Cohesion Fund.
10. The loan shall be granted the following participants of economic activity: 10.1. Regulation No 800/2008 article 1 point 6 "a" listed under the economic operator;
10.2. economic operator, which has a tax debt. This restriction does not apply if the economic operator has agreed with the State revenue service on tax debt repayment schedule and fulfil the conditions of this agreement;
10.3. the economic operator to which the judgment of the Court of Justice has declared insolvency proceedings or the judgment of the Court is the legal protection process, or by a decision of the Court of Justice is an out-of-court redress process, or where the economic activity is terminated;
10.4. the performers of economic activity for which the loss exceeds half of the share capital and the loss of the last 12 months – a quarter of the share capital. This condition does not apply to the newly created economic analyst who is registered in the companies register in less than three years;
10.5. the economic operator that Latvian guarantee agency has acknowledged the difficulty in assessing such characteristics, damage increase, diminishing turnover, growing stock inventories, excess capacity, declining cash flow, debt growth, rising interest rates, as well as the net asset value, which falls or has a value of zero. This condition does not apply to the newly created economic analyst who is registered in the companies register in less than three years;
10.6. the economic operator whose members or members who have unlimited responsibility for operating the operator's debt, more than half of the share capital losses (according to reports) and the loss in the last 12 months – a quarter of the share capital.
III. the terms of Loans 11. To log on to the loan, the economic operator shall submit to the Latvian guarantee agency the loan application and business plan, which contains a description of the investment project, as well as the marketing strategy, product description, information on the projected cash flow and other Latvian guarantee agency requested information that is not referred to in this paragraph to clarify and support documents, Latvian guarantee agency if such information cannot be obtained even in legislation.
12. The loan investments in tangible and intangible assets, which are associated with new economic operator, the operator of an economic expansion, an economic analyst, diversification of the output of an establishment into new additional products or economic operators a fundamental change in the overall production process.
13. the assets are new, unless the beneficiary is a small or medium-sized business operators pursuant to Regulation No 800/2008 article 13, paragraph 7 of the terms of the third part.
14. Intangible assets does not exceed the amount which is defined in Regulation No 800/2008 article 13, paragraph 7, and the third subparagraph of Regulation No 800/2008 article 12 paragraph 2.
15. investments remain in the Republic of Latvia in accordance with the requirements laid down in Regulation No 800/2008 article 13, paragraph 2.
16. support is provided, if it has a stimulative effect according to the characteristics set out in Regulation No 800/2008, article 8, paragraph 2 and 3.
17. the minimum amount of the loan is 100 000 lats, and the maximum is 700 000 lats. The amount of the loan does not exceed 40% of the contribution to the total cost of the project.
18. Economic operator provides a financial contribution (including credit institutions issuing long-term loans) at least 25% of the contribution to the eligible costs of the project, and it does not cover of national support funds.
19. The loan shall not exceed 10 years. Loan repayments can be made in one payment.
20. the loan is granted on the condition that the investment cost of the project is financed with credit institutions issuing long-term loan amount exceeding the amount of the loan and the repayment of principal deferred shall not exceed two years.
21. the year of the loan interest rate is equal to the loan of the credit institution's long-term interest rate plus the rate of increase (annex) according to economic analyst and investment project assessment category and the security level, which is determined in accordance with Latvian guarantee agency's credit quality rating system. The first two years of the loan increase rate is reduced by 50%.
22. the Loan is provided, if the rating category is lower than the rating category "weak (B)" (the company's solvency could reduce the adverse conditions).
IV. the calculation of the grant equivalent of aid and cumulation of 23 grant equivalent in dollars of economic activity, the operator calculates the interest actually paid amount shall be deducted from the amount of interest payable according to the European Commission for a given period fixed base rate (base rate published on the DG competition of the European Commission's homepage on the internet), as well as the risk that the percentage rate is set according to the economic operator's credit rating and category.

24. before the grant of the aid economic operator shall submit to the Latvian guarantee agency for operating a caller previously received support for investment projects, as well as information on applications for aid for initial investment in other aid scheme or individual aid projects, for which the responsible authority has not yet made a decision on the grant of or refusal to support grant aid.
25. in the framework of these rules, the aid may be combined with public aid for the same costs, if such cumulation results in an aid intensity does not exceed the Regulation No 800/2008 or the existing aid scheme or individual aid project, the stated maximum aid intensity.
26. under this provision the support received must not be combined with other structural funds of the European Union, or other financial instruments of the Community aid scheme or the individual aid project funding for the same cost.
27. under this provision the aid may be combined with other aid schemes or individual aid project funding if it provides risk capital investment, reducing this provision within the maximum amount of the aid for about 20%, up to the amount received in venture capital investment. These conditions apply three years after the granting of risk capital.
V. closing question 28. Support is provided by 31 December 2013.
Prime Minister – the Minister of Justice, Minister of Interior artist duties a. Štokenberg economic Minister a. camphor annex Cabinet 2, 2011 regulations No 613 annual percentage rate of increase rate assessment category level high standard low strong (AA-A) 0.25% for the 1.25% 0.75% good% 0.5 1.5% (BBB) 2.5% satisfactory (BB) 0.75% 2.25% 3.75% weak (B) 1% 3% 5% bad/financial difficulties (CCC and below) Economic Minister a. camphor