Cabinet of Ministers Regulations No. 164 in Riga 2009. on 17 February (pr. No 13, § 53) rules on loans to improve the competitiveness of economic 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 in the form of a loan to improve the competitiveness of economic operators (hereinafter referred to as the loan). 2. the loans provided by the national joint stock company "Latvian mortgage and land bank throw" (hereinafter referred to as the mortgage bank). These loans supplement the financial credit market funding. 3. the aim is to improve the small, medium and large business competitiveness, to promote Latvian taut Syme agricultural development. 4. Mortgage Banking for small, medium and large economic operators provided working capital loans and investment loans. 5. the total loan amount to 210 000 000 lats. 6. Lending deadline of 31 December 2013. 7. This provision within the meaning of the small and medium sized merchants is merchants who comply 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), the definition set out in annex 1. The meaning of these rules the big operators are commercial, which do not comply with Annex 1 of the said regulation the definition laid down in 8. the target groups of beneficiaries: 8.1. merchant operating in the manufacturing sector, regardless of size;
8.2. small and medium sized merchants. 9. Loans provided to small, medium and large economic operators (hereinafter referred to as the operator), which are economically viable for future action plans, but there is no available funds of credit institutions grew older stināt risks. 10. The operator may provide separate working capital loans or investment loans, or both these loans together. The total amount of loans for improving the competitiveness of economic operators to one economic operator may not exceed 6 000 000 lats. 11. can't get loans for merchants who have a tax debt. This limitation does not apply to cases in which the economic operator is agreed with the State revenue service on tax debt repayment schedule and fulfil the conditions of this agreement. 12. irrespective of the provisions in chapters II and III of the established limits you do not grant aid following sectors: 12.1. weapons and ammunition production and trade;
12.2. the tobacco production and trade;
12.3. gambling and betting;
12.4. financial and insurance activities;
12.5. operations with real estate;
12.6. wholesale and retail trade;
12.7. automotive and motorcycle repair;
12.8. vehicles, machinery and equipment, personal effects, household hardware and equipment rentals;
12.9. transportation and storage;
12.10. catering services;
12.11. duplication of computer software, motion pictures, videos, television programs and sound recording production, radio and television programming and broadcasting, telecommunications;
12.12. Professional, scientific and technical services;
12.13. Administrative and operating services;
12.14. education;
12.15. health and social care;
12.16. arts, entertainment and recreation;
12.17. social, political and other organisations, computer, indivi dual-use items and household supplies to repair, other individual services;
12.18. households as employers. 13. Mortgage Banking loan beneficiaries in addition to those in these terms of sacījum can detect other conditions, if any are established mortgage bank creditors whose resources are used to finance loans. The information that the mortgage bank to immediately publish the website (URwww.hipo.lv). II. Working capital loans 14. Working capital loans for economic operators to supplement working capital. Working capital loan of minimum EUR 150 000 the loan assignment die, except when a merchant Nah is co-financed by the European Union funds the project implementers. 15. Working capital loans provided as de minimis aid under the European Commission of 15 December 2006, Regulation (EC) No 1998/2006 on 87 and 88 of the Treaty. application of article de minimis aid (Official Journal of the European Union, of 28 December, no L 379) (hereinafter Regulation No 1998/2006). 16. The float does not grant the sectors laid down in Regulation No 1998/2006 article 1 of part 1 of "a", "b", "c" and "f", in the activities of the said Regulation No 1998/2006 article 1 of part 1 of the "d", "e", "g" and "h" point, as well as economic operators registered in the commercial register, less than three years. Merchants who are registered in the commercial register in less than three years, a float, where the relevant economic operator granted to fund the European Union co-financed the project implementers. 17. for working capital loans, the merchant submits the mortgage bank loan application and business plan. 18. The mortgage bank takes a decision on the granting of a loan in respect of current assets, based on the business plan submitted by the operator, which contains a description of the planned activities of the operator's financial situation and repayment of the loan in respect of current assets, as well as the marketing strategy, product description, the expected cash flow of operators, as well as other mortgage information from the bank. 19. Working capital loan, the maximum level is 2 500 000 la you, subject to this provision the limit set in paragraph 10. Working capital loan term-up to five years. 20. Giving working capital loans, the trader provides a de minimis aid, the total amount may not exceed the Regulation No 1998/2006, article 2 paragraph 2 limits. III. Investment loans 21. Investment loan is designed for initial investment in the territory of the Republic of Latvia. Investment loan minimum EUR 500 000 at the date of the grant of the loan, unless the operator shall implement the European Union fund co-financed project. 22. Investment loans provided as regional investment aid under the European Commission's august 6, 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) (cou childhood official journal, august 9, 2008, no L 214/3) (hereinafter Regulation No 800/2008). 23. Investment loans do not grant activities, set out in Regulation No 800/2008 article 1, paragraph 2 of the sectors laid down in Regulation No 800/2008 article 1, paragraph 3 of the operator specified in Regulation No 800/2008 of 6 article 1, point "b" and "c" above. 24. for investment lending, merchant, before starting to implement the business project, submit a mortgage bank loan application and business plan. 25. the mortgage bank takes a decision on the investment loan, based on the business plan submitted by the operator, which contains a description of the business project to be implemented, as well as the marketing strategy, product description, the expected cash flow of operators, as well as other mortgage information from the bank. 26. The great merchant business project must meet at least one of the criteria for additionality: this unfortunately 26.1. obtaining support, increase significantly the volume of the business project;
26.2. with support, significantly expand the scope of economic operators;
26.3. with support, increase significantly the total amount that the merchant may use the business project implementation;
16.4. with support, essential to accelerate the implementation of the project;
26.5. project could not be implemented if the loan is not granted. 27. The manufacturing industry merchants business project must meet at least three of the following criteria: effectiveness 27.1. increasing the number of jobs;
27.2. the value added growth;
27.3. productivity growth;
27.4. increase the efficiency of the production process;
17.1. production quality. 28. Support is provided by the following: 28.1. investment in material and immaterial assets relating to the creation of a new trader, merchant, an expansion of an existing merchant, diversification of the output of an establishment into new additional products or a merchant a fundamental change in the overall production process;
28.2. the acquisition of assets that are directly related to the merchant if merchant is insolvent or would be insolvent if it does not buy, and these features are bought by an independent investor. The condition for an independent investor shall not apply where the small merchants taking over the assets of the former staff members or former members of the family. 29. Sold fixed assets must be new, unless the beneficiary is a small or medium-sized merchants, and when taking over the assets of another merchant. 30. Intangible investments correspond to the following conditions: 30.1. it uses only the merchants receiving the aid;
30.2. included in the assets of the operator as a depreciable asset;
30.3. the purchase at market price from third parties;

18.9. the cost does not exceed 25% (not including value added tax) of the loan and the amount of eligible expenditure amounts. 31. the investment loan, the maximum level is 5 000 000 lats, subject to this provision the limit set in paragraph 10. Investment loan term – up to 10 years. 32. The loan recipient, using their own resources or external financial volume that is not associated with any commercial support, in the implementation of the investment project contribute at least 25% of the total cost of the project. 33. Investment loan, the aid intensity shall not exceed 15%, as well as the provisions laid down in paragraph 37. 34. the initial investment must remain in the Republic of Latvia for at least five years or, in the case of small and medium-sized business operators — three years after the whole investment has been completed. This restriction does not prevent the replacement of plant or equipment which has become out-dated, as technology evolves rapidly, unless all the specific period of economic activity is continued in Latvia. IV. Aid intensity and totaling 35. Grant equivalent of the economic operators shall be calculated on the basis of the feedback rate determined in accordance with the Commission notice on the reference and discount rates, methods for the determination of the review. 36. in order to receive the aid, the merchant bank mortgages submitted the following information: 36.1. where the operator lays claim to the revolving loan funds, information concerning the economic operator's previously received the de minimis aid under Regulation No 1998/2006;
36.2. where the operator lays claim to the investment loan, information concerning the economic operator's aid received above the original 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. 37. support within these provisions may be combined with the support of other support projects or individual aid projects for the same eligible costs, if the merger is not to exceed the following maximum aid intensity: 37.1. small business operators – 70%;
37.2. the average economic operators – 60%;
37.3. large economic operators-50%. 38. If the merchant has received capital under a risk capital aid program and then the first three years of the first risk capital investment loan application, this provision defined in point 35, the amount of the aid for a 20% reduction in total not exceeding the merchant received the total amount of venture capital. Prime Minister Godmanis economic Minister i. k. Gerhard