Objective of the program is to develop non-agricultural operating activities and employment in rural areas, as well as to diversify non-agricultural operating activities with a purpose to create alternative income sources and increase income level in rural areas. WHO CAN APPLY FOR THE PROJECT:

• Farmer, who performs operating activities and whose place of residence is declared in rural area, as well as individual entrepreneur or a legal entity with a legal address in rural area producing agricultural products, and in the last operating period income proportion from agricultural activities is not less than 51% from overall income;
• Person performing operating activities, whose place of residence is declared in rural area, as well as individual entrepreneur or a legal entity with a legal address in rural area, if they meet the legislation requirements defining micro or small enterprise status; in case when applicant is a legal entity not less than 75% of its share capital has to be private capital shares.

ACTIVITIES TO BE SUPPORTED:

• Development of non-agricultural activities (beneficiary performs development in existing operating activities in the sector and the industry that directly complements the existing operating activities and is associated with them in order to increase the effectiveness of the existing operating activities);
• Diversification of non-agricultural activities;
• Development of tourism activities:
  1. already existing tourist accommodation rebuilding, renovation and equipping;
  2. already existing tourist accommodation catering block construction as well as renovation or reconstruction of buildings and acquisition of the necessary equipment;
  3. new building (with a total area less than 25 square meters) construction, equipping in camping area or in the area prepared for tents, portable cabins, trailers and other lightweight structures and objects deployment, and accommodation of the guests;
  4. existing camping and youth hostels common use kitchens, dining rooms, toilets and shower rooms construction and rebuilding, renovation and equipping;
  5. diversification of the tourism services offered.

ELIGIBLE COSTS:

• Acquisition costs of new fixed assets necessary for the production and services’ providing to directly ensure the production processes and services’ providing processes within the scope of the project as well as one – time costs related to installation of the technical equipment;
• New construction or in accordance with the construction project and group of buildings – reconstruction project costs;
• Building materials purchase costs based on approved construction project or applicant’s calculations regarding the construction costs if the Construction Board has issued to the applicant an explanatory memorandum;
• Other expenses not exceeding 7% of the overall eligible construction costs and not exceeding the amount of 5000 EUR;
• Costs related to the purchase of mobile equipment to be registered in Road Traffic Safety Directorate or State Technical Supervision Agency, if the mobile equipment is not intended to be used for hire or reward.

CONDITIONS AND CRITERIA:

• The location of the object financed under this program is rural area – Latvian territory with exception of the cities and county territorial units - cities with more than 5000 inhabitants;
• Additional conditions regarding granting the development of tourism activities - the applicant at least one year before the submission of the project application as a tourism service provider is included in the travel brochure or on the website set up by the tourism promotion related entity;
• The maximum amount of eligible costs available for one applicant during the project period is calculated not exceeding the amount of net sales from operating activities during the previous financial year before project application submission more than three times.

Total amount of eligible costs for ONE PROJECT does not exceed 200 000 EUR. The maximum acceptable financing intensity of the project's total eligible costs: 40%

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