COVID-19 Guarantee Scheme (CGS) for new bank facilities

The Malta Development Bank (MDB) announced the guarantee scheme (CGS) to commercial banks in order to enhance the bank finance to businesses that are suffering liquidity shortage as a result of the COVID-19 crisis.

Loans will be available from the commercial banks accredited by the MDB. Businesses should contact the approved commercial banks to apply for this scheme. Final approval rests with the commercial banks.

Eligible enterprises

ü      SMEs - having up to 250 employees

ü      Large enterprises – exceeding 250 employees

Eligible items for finance

ü      Salaries of employees, including social and health security payments.

ü      Lease of establishment, including rental costs, energy and water bills, fuel etc.

ü    Unpaid invoices due to a decrease in business revenues in respect of working capital and other similar commitments and in respect of investment expenditures, provided that investment expenditures only qualify under the Scheme if they were contracted for prior to the approval of this Scheme by the Commission.

ü       Purchase of material and stock for continuation of business.

ü      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.

ü       Maintenance costs.

Finance through CGS cannot be used for restructuring or rescheduling of existing finance.

Maximum individual loan amounts limits

  • SMEs: up to €2 million
  • Large enterprises up to €5 million
  • Amounts higher than €2 million but limited to a maximum of €4 million for SMEs; and amounts higher than €5 million but limited to a maximum of €8 million for large enterprises, require the prior ad-hoc approval of MDB.​
  • Loan amount shall not exceed:o

           - Double of the annual wage bill of the beneficiary; OR

           - 25% of total turnover of the beneficiary in 2019

           - higher amount, subject to appropriate approval, to cover the needs of SMEs for the coming 18 months and of large enterprises for the coming 12 months.

Interest rate

Commercial Banks would need to give an interest rate reduction to beneficiaries of at least one percentage point on the average lending rate as compared to similar facilities prior to the introduction of the guarantee scheme.


Repayment period should be between 18 months and 48 months. Longer term up to 72 months is possible subject to additional terms and conditions.


Minimum moratorium (capital & interest) of 6 months, with the possibility to be extended to 1 year on a case-by-case basis.

3a Support

3a has a team of financial advisors to assist you in the application process and preparation of the required documentation. For more information kindly contact us on This email address is being protected from spambots. You need JavaScript enabled to view it.