LIAA pointed out that the European Commission (EC) has approved the Latvian support program for exporting companies, thus from Wednesday exporting companies that meet the criteria mentioned in the Cabinet of Ministers regulations “On support for exporters of goods and services affected by the Covid-19 crisis” can electronically submit applications for support. for receipt.
“Exporting enterprises are the backbone of a country ‘s economic development and
this program is one of the ways to support a faster recovery from the global economic turmoil caused by covid-19.
It is very important to preserve jobs and the economic capacity of exporting companies, therefore partial compensation of wages together with other state support instruments could be a good incentive for companies to pay off, “said LIAA director Kaspars Rožkalns.
He also pointed out that in order to be able to receive the planned support faster, companies were invited to carefully read the conditions of the support program and fill in the application form accurately. “It must be taken into account that in cases where the applications will be filled in inaccurately, we will ask for their correction, which will take additional time,” Rožkalns added.
According to his forecast, the evaluation of applications could take about a month from the moment of submission, but, after the decision has been made, payment could be made within five working days.
Exporting enterprises may apply for support if the amount of exports of goods and services in 2019 reached at least one million euros and whose average monthly gross wages and salaries paid to employees, for which mandatory state social insurance contributions have been made, were not less than 800 euros in 2019. As an additional criterion, the impact of Covid-19 on the company’s economic activity will be assessed, ie those exporting companies whose income from economic activity due to the Covid-19 crisis in one month in the period from April to June 2020 compared to the corresponding period of 2019 will be supported. month have decreased by 20%.
In the support, companies will be able to receive a one-time compensation in the amount of 25% of the mandatory state social insurance contributions paid in 2019,
but not more than EUR 800 000 per undertaking or group of undertakings. The amount of support will be received by the economic operator in one payment and will have to be paid in the salaries of employees by 31 December 2020.
The total funding of the support program is 51 million euros.
It is estimated that around 350 companies would be eligible for this type of support.
Until September 30, companies can apply for support on the LIAA website https://www.liaa.gov.lv/lv/covid19/atbalsts-eksportejosiem-krizes-seku-parvaresanai by filling in the application form, which can be sent by e-mail as an electronically signed document. mail [email protected] or use this service through the unified state and local government portal Latvija.lv.
The list of companies that have received support will be published by LIAA on the website and sent to the State Revenue Service.
LIAA will also take control measures to monitor the compliance of companies with the eligibility criteria and the use of funding. If the received support is not used for the salaries of employees by the deadline of 31 December 2020, it will have to be repaid in full or in part to the state budget.