Since July 29, when the Latvian Investment and Development Agency (LIAA) started accepting applications for the state-subsidized wage program for companies working in the tourism sector, until August 13, 379 companies have applied for support. In its turn, in the support program for exporting companies, in which applications are accepted from August 5, LIAA has received 99 applications.
“Given that the criteria for receiving support, especially for companies in the tourism sector, are relatively simple, we predicted that companies will apply more actively. Of the 478 applications, 95 have been approved and will cost about 5 million euros next week. Applications in both support programs Let’s take it until 30 September, and the amount to be paid in salaries will be eligible from the date of submission of the application, so there should be no concern that entrepreneurs will not be able to pay the received support by 31 December.
At the moment, we see that not all entrepreneurs are thoroughly acquainted with the criteria of the program, and we are forced to cancel or reject certain applications. For companies in the tourism sector, we most often find non-compliance with the criteria set by the program in relation to tax debts, which on the day of submission of the application may not exceed 1000 euros. In such cases, we invite entrepreneurs to cancel the applications and apply for support again after the payment of debts or an agreement has been reached with the State Revenue Service. We also find in some cases that the company had the characteristics of a company in difficulty even before the announcement of the Covid-19 pandemic. In accordance with the conditions of the state aid program approved by the European Commission, the payment of aid is refused in such cases as well, “explains LIAA director Kaspars Rožkalns, adding that currently 6 applications have been canceled, but 3 applications are being prepared for rejection.
The profile of companies applying for a state aid scheme is diverse. Exporters who have submitted their aid applications include food producers, logistics and construction companies, manufacturers of various equipment and construction materials, and companies working in the woodworking and metalworking industries. Companies working in various fields also apply for support in the tourism sector program. They include a relatively large number of event organizers, those working in the field of hospitality and catering, as well as self-employed and various types of tourism service providers.
The total funding of the support program for companies working in the tourism sector is 19.2 million euros, but EUR 51 million is available for exporting companies. Slightly more than € 23 million is currently earmarked from these funds, including 10 million in the tourism business program and 13 million in the exporting business program. The trend shows that those companies that apply for higher amounts of aid are the first to apply. Since the announcement of the state-subsidized wage support programs, LIAA has provided entrepreneurs with more than a thousand consultations on the application procedure.
Exporting companies support program
Data for the period from 5 to 13 August:
99 applications received.
The reserved amount is 13,346,140.74 euros.
The largest amount requested is 800,000 euros.
The minimum amount requested is 7,300.75 euros.
The average amount requested is 134,809.50.
The aid was approved for 11 companies for EUR 1 918 266.52.
Tourism business support program
Data for the period from July 29 to August 13.
379 applications received.
Reserved amount – 10,008,760.69 euros.
The largest amount requested is 693,645 euros.
The lowest amount requested is 156.55 euros.
The average amount requested is 26,408.34 euros.
The aid was approved for 84 companies for EUR 3 174 385.67
Dati: LIAA
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