EU Funding for Small Businesses in Latvia — Where to Apply in 2026
One of the most searched-for, yet least understood, questions among Latvian entrepreneurs is EU fund money. "There must be grants available somewhere, but where exactly?" "Can I get money to develop my business?" "Why did my neighbor get it, but not me?" In 2026, more than ten different support programs are operating in Latvia — from grants for startups to loans with capital rebates for green projects. The problem isn't a shortage of money; it's that the information is scattered across the websites of several ministries, agencies, and funds. In this guide we've gathered the most important programs in one place — with specific figures, conditions, and application deadlines.
Key takeaways
For the 2021–2027 planning period, the EU cohesion policy funding available to Latvia exceeds €4.4 billion
LIAA's Business Incubation Program — the most accessible support for new businesses: grants with 70% intensity — up to €23,000 for all participants (up to €10,000 for services, €8,000 for equipment, €5,000 for raw materials), plus up to €10,000 for salaries and up to €20,000 for prototyping for innovative businesses (LIAA, spring 2026 intake)
ALTUM's Start Loan — up to €250,000, a fixed rate from 4.9% (lower for sustainable projects); interest-free loans are also available in some border regions
Most grants are awarded under the de minimis principle — total aid to a single business over any three-year period may not exceed €300,000
Proper bookkeeping is a precondition for nearly every program — without accurate financial statements, an application can be rejected regardless of how good the idea is
Why EU funding is available to Latvian businesses
As an EU member state, Latvia participates in EU structural and investment fund programs. For the 2021–2027 planning period, the EU cohesion policy funding available to Latvia exceeds €4.4 billion, a significant share of which is earmarked specifically for business development, innovation, digitalization, and export promotion. The funding spans several instruments — the ERDF, the Cohesion Fund, the ESF+, the Just Transition Fund, and the European Maritime, Fisheries and Aquaculture Fund. (In the previous, 2014–2020 period, Latvia had access to roughly €4.6 billion — the two periods are easy to mix up, since the figures are close.)
Source: European Commission Representation in Latvia — EU cohesion policy 2021–2027
EU funding is available to businesses of any size and sector — the self-employed, startups, microenterprises, and small and medium-sized enterprises.
It's important to understand that EU fund money doesn't reach businesses automatically — it's distributed through national support programs administered by LIAA (the Investment and Development Agency of Latvia), ALTUM (the development finance institution), and other bodies. Each program has its own conditions, support intensity, and application deadlines.
In 2026, total public funding for business support is measured in the hundreds of millions of euros. LIAA's incubation program alone has so far paid out more than €4.35 million in support.
LIAA's Business Incubation Program — the most accessible support for new businesses
This is one of the most popular and accessible support programs for new businesses in Latvia. The Spring 2026 intake received 297 applications — the highest figure in the program's history, more than 2.3 times higher than the equivalent period a year earlier.
Who can apply
A micro, small, or medium-sized business registered in Latvia.
Business age — up to 5 years.
Tax debt not exceeding the limit set in the call conditions (check the current call).
The business is innovative, technology-driven, export-capable, or part of the creative industries. Traditional businesses with export and/or innovation potential can also apply.
What you can receive
The program offers two types of support:
Non-financial support:
Consulting on business development, marketing, product development, HR management, and financial planning
Training and seminars
Individual mentorship
Access to an expert network and international contacts
Networking events and co-working spaces
Financial support (grants with 70% support intensity):
Up to €10,000 for purchasing services (marketing, prototyping, design, IT solutions)
Up to €8,000 for equipment purchases
Up to €5,000 for raw materials
Innovative businesses have access to additional grants of up to €20,000 for prototyping, testing, and technology development
All incubation participants can receive grants of up to 70% — up to €10,000 for services, up to €8,000 for equipment and up to €5,000 for raw materials (up to €23,000 in total). Innovative businesses, including developers of dual-use goods, can additionally receive grants for the salaries of no more than two employees (up to €10,000) and for prototyping and technology development (up to €20,000), up to €53,000 in total. In the second and third years, additional support can be applied for.
These grants are awarded under the de minimis aid principle — total aid of this kind to a single business over a three-year fiscal period may not exceed €300,000 (see the de minimis section below).
How to apply
Intakes are held twice a year. The Spring 2026 intake ran from 9 to 31 March. Applications go through the liaa.business.gov.lv platform or by contacting your nearest LIAA regional office (located in 20 Latvian cities).
ALTUM support programs — loans where banks say no
ALTUM is Latvia's state development finance institution, offering loans and guarantees in situations where commercial banks don't see sufficient collateral or consider a project too risky.
Start Loan — for launching and growing a business
This is one of ALTUM's most sought-after programs among new businesses.
Key conditions:
Loan amount: up to €250,000
Fixed interest rate: from 4.9% (25 basis points lower for sustainable projects, i.e., roughly 4.65%)
Term: up to 3 years for working capital, up to 10 years for investments, up to 15 years for real estate
Can be applied for before the business is registered (with a clear business plan)
Also available to self-employed individuals and businesses of any size registered no more than 7 years ago
A special interest-free (0%) offer is available to businesses in the Augšdaugava, Balvi, Krāslava, Ludza, and Alūksne municipalities, in effect until early 2029
Source: ALTUM — Start Loan
Used for:
Purchasing raw materials, fuel costs, rent payments
Equipment, machinery, commercial vehicle purchases
Real estate acquisition, construction, or reconstruction
Business greening — new as of March 2026
On 9 March 2026, ALTUM launched a new support program for greening businesses, with a total budget of €41.5 million. The program is funded by the EU Just Transition Fund and is aimed at small and medium-sized businesses in the regions — Vidzeme, Kurzeme, Zemgale, and Latgale (outside Riga, Jūrmala, and the Riga metropolitan area).
Types of support:
Improving energy efficiency in buildings and equipment (minimum 20% primary energy savings)
Generating renewable energy for self-consumption (at least 80% of the energy produced must be used by the business itself)
Developing new products and processes that significantly reduce resource consumption and emissions
Financing conditions:
A loan or guarantee with a capital rebate of up to 30% of eligible costs
Maximum loan: €10 million; maximum capital rebate: €3 million
Loan term: up to 20 years
ALTUM guarantee on commercial bank loans of up to 80%, with a 0% guarantee fee for the first five years
The capital rebate is applied after project completion, reducing the loan's principal — this significantly improves the project's financial viability. Applications are accepted on an ongoing basis while funding is available — "first come, first served."
Productivity loans with capital rebate
Since 2 March 2026, new applications have been temporarily suspended — check the ALTUM website to see whether they have reopened before you plan around it. The program has a total budget of €100 million and is meant for innovation projects, including dual-use and new product development. When applications are open, businesses can receive ALTUM loans of up to €5 million with a capital rebate of up to €1.5 million.
LIAA export support programs
For export-capable businesses, LIAA offers several support programs in 2026:
Export Support Action Plan. Designed for businesses that want to systematically expand into export markets by implementing a structured export activity plan. Total available funding — €15.4 million (ERDF and state budget funds), support intensity — 60%, maximum support per business — up to €40,000 per year (de minimis).
Export support for large enterprises and the public sector. €1 million is available in 2026. Applications opened on 24 February 2026.
International trade fair support. Businesses can apply for LIAA support to participate in international trade fairs — both for a stand and for covering travel expenses.
In total, €18.4 million has been allocated to export promotion measures in 2026, with the goal of increasing export turnover by €300 million.
Digitalization support
LIAA's support program for digitalizing business processes has historically been in very high demand. By spring 2025, more than 2,300 applications had been received, more than 1,800 support agreements signed, and more than €28.5 million of the available €33.5 million reserved.
In late 2025, LIAA opened a new round of the program for digitalization and AI solutions, but that round's application window already closed on 7 November 2025 — requested support (€25.5 million) exceeded the available funding (€18.55 million), and reopening a new round is not currently planned.
What this means for 2026: if you're planning to apply for digitalization support, the situation changes quickly, and previous rounds are currently closed. Always check the current status on LIAA's or business.gov.lv's platform before planning. When the program is open, support intensity is typically tiered by business size — higher for micro and small businesses, lower for larger and mid-cap companies — but the exact percentages should be checked against whatever program rules are in force at that time.
Special attention is typically given to project applications related to e-commerce development, implementing accounting and warehouse management systems, and digitalizing customer service processes.
Other support options for small businesses
Support for hiring highly qualified employees
Two programs are available to startups:
45% wage co-financing for highly qualified employee (HQE) compensation. Co-financing is calculated from the fixed hourly rate set by the Ministry of Economics. For a programmer (ICT Senior Specialist), the standard rate is €31.44/hour — at 160 hours a month, the state covers €2,264.
A fixed social insurance (VSAOI) payment — reduced labor tax costs, replacing the standard social contribution burden with a predictable fixed payment.
Capitalia microloans backed by the EIF
In 2026, Latvian alternative lender Capitalia, in partnership with the European Investment Fund (EIF), launched a new initiative making microloans more accessible than ever. This is the first time in Europe that loans issued through a crowdfunding platform have received InvestEU protection.
Key conditions:
Loans up to €50,000 with reduced interest rates
Repayment term up to 36 months
No hard collateral requirements
Total program size: €15 million over three years across all three Baltic states
Source: EIF — Baltic microenterprises to get €15 million financing boost
Under its previous program (EaSI), Capitalia had already issued 523 loans worth more than €9.8 million to small businesses across all three Baltic states.
Intellectual property protection support
Since 2 February 2026, small and medium-sized businesses in Latvia can apply for EU funding to cover the cost of registering trademarks and designs. The program covers up to 75% of the official costs associated with trademark and design registration. Available funding is limited.
EIB and Luminor financing for small and medium-sized businesses
The European Investment Bank (EIB) and Luminor signed a €115 million loan agreement on 27 November 2023 to facilitate additional financing for small and medium-sized businesses across the Baltics — part of a broader financing package of more than €332 million that specifically supports the green transition. The funding is disbursed gradually through Luminor, so businesses can still access this option in 2026 — ask your bank for the exact current conditions.
De minimis aid — what to know before applying to multiple programs
A large share of the grants mentioned in this guide (LIAA incubation, export support, and others) are awarded under the EU's de minimis framework — a simplified state aid regime for small amounts of support that don't need to be individually notified to the European Commission. As of 2024, the general de minimis ceiling is €300,000 per business over any rolling three-fiscal-year period — summing all aid of this kind a business has received across different programs, not just a single grant in isolation.
Source: EUR-Lex — De minimis rule exemption of small amounts of state aid from notification (from 2024)
In practice, this means: if you've already received, say, a LIAA incubation grant and an ALTUM capital rebate, your next application must disclose the de minimis aid you've already received — once you exceed the €300,000 threshold, no further aid is available until one of your earlier grants "drops out" of the three-year window.
How to prepare an application
To improve your chances of receiving funding, it's important to prepare in advance. Here are five steps we recommend taking before applying:
Get your bookkeeping in order. Most programs require the last 2–3 years of financial statements. If your bookkeeping is incomplete, your application can be rejected even if the business idea is excellent.
Prepare a clear business plan. Especially for ALTUM loans — the business plan needs to show how the loan will be used and how it will be repaid.
Check whether you meet the criteria. Each program has its own eligibility criteria — business age, size, sector, region. Research in advance which program you qualify for.
Complete the necessary preparatory steps. For example, ALTUM's greening program requires an energy audit before you can submit an application.
Track deadlines and program status. Some programs accept applications only during specific windows (like LIAA's incubation program — twice a year), others run continuously while funding is available — and, as we saw with the digitalization support example, some can be temporarily closed.
How proper bookkeeping affects your chances of getting funding
The quality of your bookkeeping directly affects both your chances of getting funding and how much you can get.
For LIAA incubation and other grants. You need to submit accurate financial statements that demonstrate your business's financial position. Inaccurate or incomplete bookkeeping can be grounds for rejecting an application.
For ALTUM loans. ALTUM analyzes your financial indicators before granting a loan. The tidier your bookkeeping, the better your chances of getting a larger loan on more favorable terms.
For grant reporting. Once you receive a grant, you need to be able to account for how the funding was spent. Without organized bookkeeping, that's nearly impossible.
No outstanding tax debt. Most programs require, as a precondition, no outstanding tax debt (or a very small one — the limit is set in the conditions of the specific call).
EU fund money isn't a myth — it's real, accessible, and measured in the hundreds of millions of euros. But receiving it takes preparation: organized bookkeeping, a clear business plan, and precise alignment with a program's criteria. Our team helps businesses prepare the financial documents they need and advises on choosing the right support program. Get in touch to discuss your situation, or see our accounting services.
Frequently asked questions
Can I receive support from multiple programs at once?
It depends on the program. Many programs operate under the de minimis aid principle — total support to a single business over a three-year period cannot exceed €300,000, summing all de minimis aid received. Some programs operate outside the de minimis limits (for example, some ALTUM loan schemes). Consult a specialist before applying to multiple programs.
How long does it take from application to receiving the money?
For LIAA's incubation program: after the application window closes (e.g., 31 March), evaluation times are set in each call and no official fixed timelines are published — check the current information on the LIAA and ALTUM websites.
Do I have to repay grants?
No, LIAA grants don't need to be repaid — they're non-repayable financial assistance. ALTUM loans do need to be repaid (they're loans, not grants), but on more favorable terms than commercial banks offer — for example, a lower interest rate or a capital rebate.
Can foreigners apply for these programs?
The programs are available only to businesses registered in Latvia. If you have a Latvian SIA, you can apply regardless of your citizenship. However, some programs require that the business's economic activity actually take place in Latvia.
What's the difference between a grant and a loan with a capital rebate?
A grant (like LIAA's incubation support) is non-repayable — the money is yours if you meet the program's conditions. A loan with a capital rebate (like ALTUM's greening program) has to be repaid, but after the project is successfully completed, part of the principal (up to 30% in the greening program) is written off — this reduces your actual repayment obligation, but it isn't entirely "free" money the way a grant is.
How do I find out if a specific program is still accepting applications?
Program status changes frequently — some close once they hit their funding limit (as we saw with the digitalization support example), while others open new rounds. Always check the current status directly on LIAA's (liaa.gov.lv, liaa.business.gov.lv) or ALTUM's (altum.lv) website, rather than relying on older articles or third-party roundups — including this one.
Related reading: how to register a SIA in Latvia and the startup ecosystem and visa.
Sources
European Commission Representation in Latvia — EU cohesion policy 2021–2027
EIF — Baltic microenterprises to get €15 million financing boost (Capitalia)
EUR-Lex — De minimis rule exemption of small amounts of state aid from notification (from 2024)
Last updated: September 2026. Information based on official materials from LIAA, ALTUM, the European Commission, and the EIF, and current program announcements. Support program status and deadlines change frequently — always check the current information directly on the relevant institution's website before applying.
Comments