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Izola Boost

is designed to aid Maltese businesses that are losing revenue and seeing their

cashflow disrupted as a result of the COVID-19 outbreak.

 

 

 

Loan features

We are pleased to be working with the Malta Development Bank (MDB) and offering this lifeline to businesses who urgently need this service.

We are pleased to be working with the Malta Development Bank (MDB) and offering this lifeline to businesses who urgently need this service.

 

Financing

SMEs – up to €2 million (up to €10 million subject to MDB Approval)

Large Enterprises – up to €5 million (up to €25 million subject to MDB Approval)

*Financing limits are determined according to set criteria. See next section below

Interest Rate

3% per annum over the three-month Euribor (no 0% flooring applicable)

Interest Rate Subsidy

Clients will also benefit from any Government interest rate subsidy

Guarantee Fee

Guarantee fees as approved by the EU Commission apply.

Loan Term

Minimum 18 months. Maximum 48 months.

The term can be increased to 72 months with additional terms and conditions

Moratorium

6 months (Possible extension to 1 year depending on specific criteria.)

Application End Date

31 December 2020

 

 

Financing

SMEs – up to €2 million (up to €10 million subject to MDB Approval)

Large Enterprises – up to €5 million (up to €25 million subject to MDB Approval)

*Financing limits are determined according to set criteria. See next section below

Interest Rate

 
3% per annum over the three-month Euribor (no 0% flooring applicable)
Interest Rate Subsidy Clients will also benefit from any Government interest rate subsidy

Guarantee Fee

 
Guarantee fees as approved by the EU Commission apply.
Loan Term

Minimum 18 months. Maximum 48 months.

The term can be increased to 72 months with additional terms and conditions

Moratorium

6 months (Possible extension to 1 year depending on specific criteria.) 

Application End Date 31 December 2020

 

Businesses interested in applying for Izola Boost can find out more by sending an email to [email protected]

How is the total financing limit established?

 

The loan amount applied for should not exceed:

Double the annual wage bill of the beneficiary (including social charges as well as the cost of personnel working on the undertakings site but formally in the payroll of subcontractors) for 2019.

In the case of undertakings created on or after 1 January 2019, the maximum loan must not exceed the estimated annual wage bill;

OR

25% of total turnover of the beneficiary in 2019.

 

With appropriate justification the amount of the loan may be increased to cover the beneficiary’s liquidity needs, from the moment of granting of the facility, for the coming 18 months for SMEs and for the coming 12 months for large enterprises.

What can this loan be used for?

Eligible costs under these loans are:

  • Salaries of employees, including social and health security payments.
  • Lease of establishment, including rental costs, energy and water bills, fuel etc.
  • Unpaid invoices, due to a decrease in business revenues, in respect of working capital and other similar commitments and in respect of investment expenditure, provided that they were contracted for prior to the 3rd April 2020.
  • Acquisition of material and stock for continuation of business.
  • Expenses directly related to contracts which were cancelled or postponed because of the COVID-19 outbreak excluding penalties and other liabilities incurred due to non-performance of contracts.
  • Maintenance costs.

 

The COVID Guarantee Scheme (CGS) shall not cover restructuring or rescheduling of existing facilities.

Who is eligible?

All loans are subject to acceptance under normal lending criteria as per the Bank’s Credit Policy and will require approval by the Bank.

 

Eligible enterprises are business undertakings established and operating in Malta, consisting of:

What information do you need to supply?

 

For eligibility assessment purposes, you will need to provide us with:

  • Latest financial statements
  • Cash flow forecast
  • Documentation supporting your request as may be required.
  • Latest financial statements
  • Cash flow forecast
  • Documentation supporting your request as may be required.

 

More Information

Further details about the MDB COVID-19 Guarantee Scheme can be found on the Malta Development Bank website.