[WATCH] Government to fork out €2.5 million in industrial rent subsidy for SMEs

Small and medium companies will be able to benefit from a rent subsidy scheme unveiled by Malta Enterprise on Thursday.

The scheme will cost around €2.5 million and is backdated to February and will run until the end of December 2022.

Economy Minister Silvio Schembri and Malta Enterprise CEO Kurt Farrugia said the incentive is aimed at cushioning the costs incurred for the rental of industrial premises.

The property must be rented out from a third party in the private sector, and the rent agreement must not have commenced earlier than one year prior to the application.

The scheme is aimed at SMEs, including companies, cooperatives and registered self-employed, and eligible sectors including the repair of machinery, equipment, and motor vehicles, manufacturing and industrial activities.

The maximum support each applicant will be able to receive will be €25,000 yearly, and an aid intensity of up to 50% of costs incurred by the company, excluding taxes.

Companies eligible for the scheme must not have exceeded a €10 million turnover in the last year, and is intentioned for companies who employ 100 workers or less.

SMEs who make use of public rent and exhibition spaces like showrooms, will not be eligible for the scheme.

““This will help breathe new life into industrial spaces... this scheme is not intentioned for big businesses, because we want to continue aiding small investors who plan to grow on our island,” Schembri said.

Guidelines will be made available on the Malta Enterprise website.

Opening of airport

In light of the European Commission’s statement on Wednesday, regarding the possible reopening of internal flights in Europe, Schembri said that discussions remain ongoing.

“Discussions are continuous, and in the same way a direction has not yet been issued for other sectors, no final decisions have yet been taken,” he said.

He also said that protocols surrounding “the new normal” are already being outlined by the EU on all sectors.