Business Greening with Capital Rebate

Business Greening with Capital Rebate

Funds climate focused industrial modernization in Latvia through small business support in multiple regions.

The Business Greening with Capital Rebate program is a hybrid financing instrument administered by ALTUM, Latvia's state-owned development finance institution, using EU Just Transition Fund resources with a total program budget of EUR 41 million. The instrument combines three components for qualifying small and medium-sized enterprises: an ALTUM loan of up to EUR 10 million for eligible project costs, a bank-loan guarantee covering up to 80% of the commercial loan, and a non-repayable capital rebate of up to 30% of loan principal, capped at EUR 3 million per related company group. The capital rebate is the grant element; the loan and guarantee are separate instruments that accompany it.

Eligible activities must achieve measurable environmental thresholds: energy efficiency projects must deliver at least 20% primary energy savings, renewable energy installations must achieve at least 80% self-consumption, or the investment must produce new environmentally-friendly products or technologies. Eligibility is restricted to micro, small, and medium enterprises registered and operating in Latvia's Latgale, Vidzeme, Zemgale, or Kurzeme statistical regions; the Riga statistical region is excluded. Primary agriculture, fisheries, tobacco manufacturing, and gambling are excluded sectors.

Applications opened from March 2026 onwards with decisions targeted within six months of submission. Projects must be completed by February 2029, and capital-rebate applications must be filed with ALTUM by 31 March 2029. The program is funded under the EU Just Transition Fund mechanism, which targets economic diversification in regions affected by the shift away from fossil fuels. Applicants coordinate with ALTUM directly; documentation is expected in Latvian, with English summaries available on the ALTUM website.