OREANDA-NEWS. On 03 February 2009 was announced, that Mr. Janis Birks, Chairman of Riga City Council, and Mr. Maris Avotins, CEO of Swedbank Latvia, formally signed agreement on co-operation within the grant scheme Kick-Off designed for support to small and medium-sized companies in Riga and encouraged companies to apply for their participation in the competition of grants.

Business Coordination Centre of Riga City Council in co-operation with Swedbank has designed a grant scheme Kick Off and its goal is to enhance development of small and medium-sized businesses. In the first year of the grant scheme it is planned to support approximately 25 new companies in the total amount of LVL 120 000. The maximum grant available for a company will be in the amount of LVL 6 000. The budget of the grant scheme will be financed from funds provided by Riga City Council (60 %) and Swedbank (40 %).

“Under the current economic situation it is of high importance to make substantial investments into development and promote business activity which would create new jobs and enhance overall viability of the city. Moreover, this must be done by providing immediate support instead of developing long-term plans,” emphasizes Mr. Jвnis Birks, Chairman of Riga City Council.

“We are pleased to seize this unique opportunity and in co-operation with Riga City Council to provide support to small and medium-sized companies which make a significant part of the economy in Latvia. Support to development and implementation of good business ideas have always been a priority of Swedbank and we believe that right now this kind of support is of vital importance,” says Mr. Mвris Avotiтр, CEO of Swedbank in Latvia.

“The grant scheme will provide the opportunity to people who have good ideas and wish to start up their business which often needs only a small amount of start-up capital. We hope that out of these small businesses one day we will see new brands in the economy of Latvia,” says Mr. Ervins Labanovskis, Director of Business Coordination Centre of Riga City Council.

In order to select companies eligible for the support, there will be an open competition organised where both legal and private entities, who qualify under the rules of the competition, will be welcome to participate. Applications submitted by the competitors will be assessed according to the previously established evaluation criteria. The top ranking competitors will be offered to enter into agreement on granting of co-financing.

Within the framework of the scheme partial support (75 %) will be provided to that expenditure of new businesses which are related to acquisition of specific equipment and licences, payment for accounting and legal services, adjustment of trading outlets, development of websites and other expenditure. The support provided within the framework of the scheme will help the businesses to establish infrastructure for successful operations.

Tax payments to the municipal and state budget made by residents employed by the supported companies is one of the quantitative feedback indicators. Provisional estimates made by the Business Coordination Centre show that taxes paid by the employees of the grant supported companies over the period of time of 5 years will exceed the amount of funds issued in grants.

Companies are invited to apply for their participation in the Kick-Off scheme until 16 March 2009. Applications must be submitted to the Reception Desk of Riga City Council located in Riga, Kungu St. 7/9, LV-1050. More details on the grant scheme are available on the website at www.atsperiens.lv.