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Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure LV-2021-40/2136 – measures in Latvia

Grant for working capital flow (re-introduced)

Grants apgrozāmo līdzekļu plūsmas nodrošināšanai (atjaunots)

Country Latvia , applies nationwide
Time period Temporary, 01 October 2021 – 31 January 2022
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial) or damage compensation
Author Kriss Karnitis (EPC) and Eurofound
Measure added 10 January 2022 (updated 26 May 2022)

Background information

Following a surge in COVID-19 infections, the Latvian Government declared a 3-month long state of emergency on 9 October 2021, starting from 11 October 2021. Later, on 21 October, the Government introduced a four-week period of even more strict restrictions to significantly slow down the spread of COVID-19. To help entrepreneurs overcome this phase of the crisis, the government introduced several support measures.

The grant for working capital flow is based on the previously developed support measure Grant for working capital flow .

On 7 December 2021, the government amended regulation No. 676 “On support to companies affected by the COVID-19 crisis to ensure the flow of working capital”. The amendments were agreed with the European Commission and entered into force on 17 December 2021.

On 6 January 2022 the state of emergency was extended until 28 February 2022.

Content of measure

To help overcome the third wave of COVID-19, the grant to compensate is available for companies affected by restrictions on economic activity set in the country for October, November, December 2021 and January 2022, that resulted in a decline in turnover:

  • at least 20% of the average turnover in July, August and September 2021;
  • or by at least 30% compared to the turnover in the corresponding month of 2019 (the turnover in 2021 has to exceed 10% of the turnover in the corresponding calendar month of 2019 for at least 3 months).

New companies registered after 1 January 2021 can apply for support if the criterion of a 20% drop in turnover is met, compared to the average turnover in July, August and September 2021.

Only entrepreneurs who carry out economic activities in the sectors specified in the regulations may apply for support for December 2021 and January 2022. The list includes bars, cultural activities, artists' activities, artistic and literary creation and interpretation activities, gambling and betting, and amusement and recreation activities.

The amount of the grant is 30% of the total amount of the gross salary paid by the company (including the employer's mandatory state social insurance contributions) calculated in July, August and September 2021. The maximum support available per company is €250,000 per month. The maximum amount of support available to a group of related companies is €2.3 million.

When applying for support for a wage subsidy and a grant, the wage subsidy support is paid as a priority.

Use of measure

Not available.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Any other form of consultation, institutionalised (as stable working groups or committees) or informal Any other form of consultation, institutionalised (as stable working groups or committees) or informal

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Unknown


Peak level social partners’ organisations are normally informed of Government decisions. Regarding COVID-19 measures, social partners participate in working groups and depending on their capacities are involved in consultations and negotiations.

Views and reactions

No specific views to report.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      I - Accommodation And Food Service Activities I56 Food and beverage service activities
      R - Arts, Entertainment And Recreation R90 Creative, arts and entertainment activities
      R92 Gambling and betting activities
      R93 Sports activities and amusement and recreation activities

This case is not occupation-specific.


  • 08 October 2021: From 11 October, an emergency situation is declared in Latvia for three months (
  • 21 October 2021: During four-weeks period, Latvia will put in the maximum efforts to control the Covid-19 pandemic (
  • 17 December 2021: Regulations Nr. 676 On support to companies affected by the COVID-19 crisis to ensure the flow of working capital (17 December 2021) (
  • 10 January 2022: State Revenue service website (accessed on 10 January 2022) (


Eurofound (2022), Grant for working capital flow (re-introduced), measure LV-2021-40/2136 (measures in Latvia), EU PolicyWatch, Dublin,


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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.