"Altum" launches new loan program for rural entrepreneurs
A new "Altum" support program called "Small Loans in Rural Areas with Capital Discount" was launched in Dobele municipality, offering partially forgivable loans for agricultural development. The program's total funding is 27 million euros.
In September, a launch event was held at the SIA "Latroots" farm — known as "Ogotava–Puķotava" — in the Auri parish of Dobele municipality, marking the start of a new support program from the development finance institution "Altum". The program is called "Small Loans in Rural Areas with Capital Discount". Attendees included rural entrepreneurs, industry representatives, and experts from the Ministry of Agriculture, the Rural Support Service, "Altum", and local government.
Purpose and scale
The new program is designed to support investment projects in agriculture and agricultural product processing in rural areas. Its goal is to strengthen farm competitiveness, encourage diversification of agricultural production, help businesses shift toward more promising sectors, and support the development of new products. The program's total funding available for loans is 27 million euros.
The program targets farmers up to 40 years old who are establishing their own farm or have taken one over within the past five years, as well as existing farmers and food producers who want to diversify or redirect their operations.
Terms and eligible uses
A single project can receive a loan of up to 250,000 euros. Once a project is completed and specific business performance targets are met, borrowers may qualify for a capital discount of up to 50% of the loan principal, capped at 100,000 euros.
The funding can be used to purchase agricultural machinery, production equipment, and technological lines, as well as for constructing, rebuilding, or acquiring buildings and structures. Loans may also cover the purchase of farm animals and annual or perennial plants, along with design, construction supervision costs, and non-recoverable VAT.
There is no restriction on land purchases for young farmers' projects, while projects focused on diversification, reorientation, or processing may allocate no more than 10% of the loan amount toward land acquisition.
