New Initiative for SMEs under COVID-19 Guarantee Scheme
10 August 2020
Smaller businesses may now benefit from the Malta Development Bank’s new initiative. This initiative supports the businesses which take out loans under the COVID-19 guarantee scheme (CGS) while removing the need for high levels of soft collaterals.
After concerns were raised that the CGS only covered 90% of the loan, the Malta Development Bank is now offering further protection to the banks over the remaining 10% of the loan. This specifically helps smaller businesses who were being subject to many difficulties when applying for loans.
This scheme has been approved by the European Commission under the Temporary Framework for State Aid measures aimed to support economic stability during the pandemic.
This scheme applies to loan contracts of up to €250,000 concluded after the 29th July. The Malta Development Bank is also in discussions with banks with regards to existing loans.
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