Micro Loan Guarantees

Eligible enterprises may benefit from assisted loan guarantees which means that Malta Enterprise will be able to partially guarantee loans granted by a licensed commercial bank. Eligible enterprises which carry out a qualifying activity in Malta and which fail to obtain a loan from a licensed bank may be considered by Malta Enterprise to be […]

Written By Stephen Balzan

On May 28, 2017
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Eligible enterprises may benefit from assisted loan guarantees which means that Malta Enterprise will be able to partially guarantee loans granted by a licensed commercial bank.

Eligible enterprises which carry out a qualifying activity in Malta and which fail to obtain a loan from a licensed bank may be considered by Malta Enterprise to be eligible for an assisted loan in terms of the regulations and Guidelines issued by the same Malta Enterprise.

The loan has to be intended exclusively for the acquisition of tangible assets, intangible assets and working capital linked to such acquisitions.  Assisted loans may not exceed the maximum limit of Eur100,000 and the term of the assisted loan shall be for a maximum period of 10 years starting from the date on which the loan was granted.

A qualifying activity is defined in the Regulations as an economic activity consisting of a trade or business that may contribute to the economic development of Malta.  On the other hand, enterprises which are eligible to benefit from such assisted loans may not employ more than 50 persons, whose annual turnover does not exceed Eur10,000,000 and whose balance sheet total for the fiscal year preceding the date of application does not exceed Eur10,000,000.

Family businesses as defined in the Family Business Act may also be able to benefit from such loan guarantees.

With effect from 1st January 2017, the guarantee exposure by Malta Enterprise shall not exceed 80% of the total outstanding loan balance due to the bank which shall not exceed the sum prescribed in the Guidelines issued by the same Malta Enterprise.

How can we help?  

For further information, please contact one of the firm’s tax partners, Stephen Balzan on [email protected] or Elaine Camilleri [email protected]. ACT can help you understand the changes to the tax rules and how these can impact your business.  

Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria.  For an appointment in our Gozo office, please call on 00356 21378672 or send us an email on [email protected]. 

Disclaimer: This article contains general information only and is not intended to address the circumstances of any particular individual or entity. ACT, by means of this article is not rendering any accounting, business, financial, investment, legal, tax, or other professional advice or service. This article is not a substitute for such professional advice, nor should it be used as a basis for any decision or action that may affect your finances or your business. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Before making any decisions or before taking any action that may affect your finances or your business, you should consult a qualified professional adviser. ACT shall not be responsible for any loss whatsoever sustained by any person who relies on this article.