MDB CEO Paul V. Azzopardi: Enhanced SME loan schemes will empower businesses to ‘grow and succeed’

MDB CEO Paul V. Azzopardi has expressed confidence that the extended SME Guarantee Scheme (SGS) and Guaranteed Co-Lending Scheme (GCLS) will provide businesses with greater financial flexibility, enabling them to grow and thrive in an increasingly competitive market.

The extension of the schemes is being carried out in collaboration with its three intermediating partner banks: APS Bank, Bank of Valletta, and HSBC Bank Malta.

At the end of 2024, the SGS and GCLS have provided guarantees to accredited local commercial banks so that these banks could give favourable loans approaching €40 million to SMEs, read a statement.

It added that in line with evolving market needs and the implications of new State aid rules, the MDB has also increased the maximum loan amount under the SGS from €750,000 to €1,000,000. Meanwhile, the GCLS will now cater for larger loans ranging from €1,000,001 to €10,000,000, offering a broader range of support for businesses seeking growth and development.

These schemes “offer valuable support for firms across various economic sectors of the Maltese economy, serving as a crucial measure in helping them thrive, particularly as they contend with the realities of the digital and green transition.”

MDB Chairman Leo Brincat stated that “the extension of the SME Guarantee Scheme and the Guaranteed Co-Lending Scheme is a testament to the MDB’s commitment to continue supporting SMEs and fostering sustainable economic growth. By addressing the financing gaps faced by businesses, these schemes provide invaluable support to entrepreneurs.”

Mr Azzopardi added that “we are confident that more enterprises will benefit from the enhanced terms, which include reduced collateral requirements, a lower upfront contribution, lower interest rates, and extended repayment periods, empowering them to grow and succeed in an increasingly competitive market.”

Details on the extended schemes, including specific terms and conditions, are available on the intermediating partner banks’ websites and here.