For the Development of Innovative Products

For the Development of Innovative Products

Funds Latvian companies developing RIS3-priority products with loans paired with principal rebates.

The ALTUM programme for the Development of Innovative Products is a combined loan-plus-capital-rebate instrument administered by ALTUM, the Latvian state development finance institution, and co-financed by the European Union through the European Structural and Investment Funds. It targets Latvian enterprises developing innovative products that align with the country's Smart Specialisation Strategy (RIS3) priorities, specifically smart technologies, bio-economy, and dual-use security and defence applications. The programme is distinct from ALTUM's pure R&D loan in that it carries a conditional grant component.

The instrument provides a loan of between EUR 300,000 and EUR 5 million with a term of up to 15 years. On top of the loan, a capital rebate of up to 30 percent of the principal — capped at EUR 1.5 million per applicant — can be awarded upon satisfactory completion of milestones, effectively converting a portion of the debt into a non-repayable grant. The rebate operates under either EU General Block Exemption Regulation (EC) 651/2014 or the de minimis framework (Regulation 2023/2831). Eligible applicants are enterprises registered and operating in Latvia with no more than 3,000 employees. Eligible costs include tangible and intangible assets as well as wages directly related to the innovative product development activity.

Applications are currently suspended — ALTUM is not accepting new submissions under this instrument as of the most recent programme status information available. Interested enterprises should monitor ALTUM's official programme page for the resumption of the application window. When open, the process runs through ALTUM directly, and companies should demonstrate a clear link to an RIS3 priority area and provide a commercialisation plan for the innovative product being developed.