Izola Bank launches a new financing product to help local businesses.
Working in collaboration with the Malta Development Bank (MDB), Izola Bank has officially launched Izola Boost, which is designed to support local clientele experiencing cash flow issues due to the Covid-19 crisis. Izola Boost helps businesses navigate through this period of uncertainty, offering much needed cashflow to help support salaries and wages, stock purchases, expenses due to delayed or cancelled contracts, ongoing expenses and maintenance costs.
Andrew Mifsud, CEO of Izola Bank explains: ‘We are committed to supporting our business clients, making sure that they have access to much needed funding to keep their companies operational. Izola Boost is designed to aid Maltese businesses that are seeing their cashflow disrupted as a result of the COVID-19 outbreak. We are pleased to be working with the Malta Development Bank and offering this lifeline to our business clients who urgently need this service.’
Izola Boost is supported by the Malta Development Bank, through its MDB COVID-19 Guarantee Scheme which offers participating banks a Bank guarantee of €350,000,000, covered by a Government guarantee issued by the Ministry of Finance. Approved by the European Commission under the Temporary Framework for State Aid, this scheme will see the Malta Development Bank take on 90% of the risk of each facility.
Mr Andrew Mifsud continues: ‘This new initiative will provide businesses with access to critical liquidity, helping to ensure their survival. Businesses will also see a standard 6-month moratorium on both capital and interest payments, with the possibility of this being extended up to 1 year, approved on a case by case basis. This service is designed to help relieve unexpected pressure that Maltese businesses are now facing.’
Loan Features
| 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].