ACCESS TO FINANCE (SOFT LOAN) REGULATIONS

ACCESS TO FINANCE (SOFT LOAN)

SUBSIDIARY LEGISLATION 463.42

ACCESS TO FINANCE (SOFT LOAN) REGULATIONS

1 st May 2021

LEGAL NOTICE 306 of 2021, as amended by Legal Notice 376 of

2022.

The title of these regulations is the Access to Finance

(Soft Loan) Regulations.

In these regulations, unless the context otherwise

requires

"Act" means the Malta Enterprise Act;

"Corporation" means Malta Enterprise established under the

Act;

"Guidelines" means such guidelines as may be published by the

Corporation from time to time in terms of the Act;

"undertaking" shall have the same meaning as assigned to it in

the Act.

Where the Corporation is satisfied that an eligible

undertaking is carrying out an eligible investment project in Malta in

accordance with the terms and conditions set out in the Guidelines, the

Corporation may support the eligible undertaking with a soft loan to

cover part of the funding requirements.

(1)

Eligible undertakings may be supported through a

soft loan of up to one million euro (€1,000,000) for funding projects

leading to further development, expansion of activities, process

optimisation, improved environmental performance and sustainability,

as further outlined in the Guidelines.

(2)

The loan may cover up to seventy-five percent (75%) of

costs related to the proposed project including the procurement of

assets, wage costs, know-how and other non-recurring costs as further

defined in the Guidelines.

(3)

The loan shall be secured by collateral covering at least

fifty per cent (50%) of the loan amount.

(3a)

The undertaking shall provide a general hypothec

covering the approved loan.

(4)

The value of aid of a loan shall be considered to have a

gross grant equivalent at the time of granting calculated as a

corresponding proportion of the relevant de minimis ceiling as

established in Commission Regulation (EU) No 1407/2013 of 18

December 2013 on the application of Articles 107 and 108 of the

ACCESS TO FINANCE (SOFT LOAN)

Treaty on the Functioning of the European Union to de minimis aid

(the de minimis Regulation), as amended.

(5) The investment value not covered by the loan issued by

the Corporation shall be financed by a loan issued through a

commercial bank and, or through reserves of the undertaking or other

funds considered to be the undertaking’s own funds.

(1)

Applications for assistance to support eligible

undertakings under these regulations shall reach the Corporation

before 31 st October 2023.

(2)

No assistance under these regulations shall be awarded

by the Corporation after 31 st December 2023.