The Malta Development Bank COVID-19 Guarantee Scheme

The Malta Development Bank COVID-19 Guarantee Scheme is a government backed scheme which secures bank loans for eligible and viable businesses who may need to respond to cash flow and liquidity pressures resulting from the adverse business conditions following the COVID-19 outbreak.

This could be the right solution for you if you are an existing HSBC Malta business customer:

  • looking for financial support through the short-term uncertainty due to COVID-19.
  • looking to increase your working capital funding.

The Malta Development Bank has launched the COVID-19 Guarantee Scheme (CGS) which is intended to fund new working capital facilities for business customers established and operating in Malta.

Key features and benefits:

  • A Government guarantee which secures 90% of bank loans to any viable & eligible business with a sound borrowing proposal, but which may lack adequate security.
  • A maximum term of 6 years is permitted under the terms of the Scheme, however this will be considered by the Bank on a case by case basis.
  • Discounted upfront arrangement fee of 0.3%.
  • Scheme entails government guarantee fee of between 0.15% and 2.00% per annum, depending on business size and loan tenor.
  • Loan amounts between €20,000 and €25,000,000 depending on business size. Loan amounts must not exceed double the 2019 wage bill or 25% of 2019 turnover.
  • Interest rate will depend on individual circumstances, starting from 2.5% up to a maximum rate of 3.75%. Details of government subsidy on interest rates will be advised as soon as available.
  • No early repayment charges, should you wish to repay early.
  • No urgent lending request fee.

You may need to provide the following documentation:

  • Copy of the last 2 years financial accounts
  • Cash flow forecast (covering the next 12 months), including impact of any other related COVID-19 support on cash flow
  • Business plan, including 2020 budget and year to date management accounts, and management action plan / steps being taken to address COVID-19 impact
  • Overview of existing borrowing facilities (across all lending institutions)
  • Security currently provided in relation to business borrowing facilities and potentially available (if any)
  • Estimated borrowing requirement and for what period

Next steps:

  • For any further enquiries, please contact your relationship manager
  • To apply for a loan under the COVID-19 Guarantee Scheme click below

To apply for COVID-19 Guarantee Scheme, click here

Customers should be aware of an increased fraud risk at this time. Fraudsters may attempt to gain your personal details through offering fraudulent CGS loans. HSBC will not be emailing or calling customers offering this scheme and you should contact us through your existing HSBC contact or via our normal channels.

Malta Development Bank

 

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