Government offers band clubs relief on bank loan interest

The government has launched a new scheme to reduce the cost of bank loans for Maltese and Gozitan band clubs, with €280,000 allocated to help societies carry out improvements and renovations.

Minister for Culture, Arts and Local Government Owen Bonnici, together with the Arts Council Malta, announced the initiative, which will cover 50% of annual interest payments on approved bank loans for musical societies.

"Maltese musical societies have a long tradition of cultural service, and many of them continue to invest in modern facilities, musical education and community initiatives,"  Bonnici said. "Through this measure, we are reducing the pressure created by high interest rates when they come to take out loans from a commercial bank and fulfilling the promises of this government to strengthen cultural structures practically and responsibly."

The scheme is designed to give clubs the tools to strengthen their role in the community. The support is calculated on a maximum loan amount of €500,000 and can be granted for a maximum of ten consecutive years.

Luke Dalli, Executive Chairman of the Arts Council Malta, stressed that the scheme will significantly reduce the financial burden on band clubs. 

He explained that by leaving more space in the club's coffers, clubs will be able to invest more seriously in their infrastructure, renovation, cultural work and the formulation of a long-term plan that strengthens the future of the music and community sector.

The call operates on a first-come, first-served basis until 17 November 2026, or until all funds are allocated. 

Only voluntary organisations enrolled with the Commissioner of Voluntary Organisations that comply with the law on volunteering, that qualify as band clubs or musical societies and that have a bank-approved loan or are in the process of obtaining one can apply.

Musical societies that have had their premises purchased by the government to avoid eviction due to the legal situation of pre-1995 rental laws will not be able to benefit from this scheme.

The eligible period for interest on the loan extends between 1 January 2026 and 31 December 2035.

For guidelines and eligibility criteria, visit https://artscouncil.gov.mt.