Up to €1 million in soft loans for sustainable investments under new scheme

The scheme is aimed at businesses that failed to secure bank loans during the pandemic

Malta Enterprise has launched a soft loan scheme that will cover up to €1 million in costs for businesses that had to postpone investments due to the pandemic hurdles.

Kurt Farrugia, Malta Enterpise's CEO, explained that the scheme will help those enterprises that could not get their investment loans covered by the banks.

It will target those enterprises that are launching a new product in a new geographic market, addressing environmental issues like water conservation and waste treatment, optimising their business processes, and reaching high levels of sustainability.

Farrugia said that the scheme will be open until October 2023 and that the projects must be implemented within an 18-month period.

Malta Enterprise will be covering up to 75% of related costs, including assets and salaries, and the loan is to be repaid over a five-year period.  The enterprises should be employing at least one person.

Enterprise Minister Miriam Dalli added the industry is facing a crucial time, and several discussions were held with stakeholders and businesses to address any shortcomings in the scheme.

She remarked that assistance has already been provided by the government in order to protect companies and their employees, but government now wants to help businesses that want to "take it to the next step".

“The government wants to incentivise investment in order for the country to come out of the pandemic stronger. We will partner up with enterprises that are looking to diversify, as we want an enterprise that sustains competition,” Dalli said.

Dalli added that Malta saw an economic growth of 5.6% compared to 2020.

She also emphasised that the government wants enterprises to lead the way for a more digital and sustainable economy, with the least impact possible on the environment.