Government Grants: Everything You Need to Know

UPDATED ON  23TH JUNE 2020

In the light of recent economic prognosis, Malta Enterprise has announced more financial support to assist with the regeneration of the Maltese Economy.

There are several challenges brought by the pandemic and businesses  will need to make operational changes to address  them. Apart from the financial support already provided by the Government, Malta Enterprise announced another financial injection of up to €5,000 per organisation for ‘Business Re-Engineering Consultancy’.

The support is aimed for projects that are designed to develop management capability and drive company efficiencies and business process improvements. The total budget allocated towards this initiative is €2.5 million.

Let us help you identify key process improvements that can help your organisation become more agile and efficient, whilst benefiting from the €5,000 financial support.

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As a small or a medium business owner wishing to turn your great idea into a thriving business venture, acquiring the necessary funds to achieve this vision can be frustrating. Your size may limit your ability to qualify for traditional forms of business lending, making it all too easy to assume that the capital your business requires lies beyond your reach. But before you decide to look inwards and remove funds from your own savings, you could explore what grant opportunities exist in your local area, including Government Grants.

This week ICON looked at government grants available in Malta, as funding has boomed to help SMEs survive the COVID-19 pandemic.

Micro Invest

Malta Enterprise will approve a tax credit equivalent to 45% of eligible expenditure. Moreover, an additional bonus of 20% (that is a total of 65% tax credit) applies to undertakings operating from Gozo.

The maximum eligible tax credits per single undertaking shall be capped at €50,000 over any period of three consecutive fiscal years

This capping specified above shall be increased by €20,000 (to a total of €70,000) for undertakings:

• operating from Gozo;
• registered as a Family Business; and
• having more than 50% of the ownership attributed to female persons.

Eligible Costs

Tangible and intangible assets required for digitisation of the business operation. Eligible costs may include:

• Computer hardware.
• Packaged software solutions.
• Development costs for new software systems, websites and digital applications. In these cases the applicant must submit the agreement with the supplier specifying the parameters and functionality of the systems/website/application being developed. Maintenance costs are not eligible.
• Costs incurred in relation to the applicants websites developments, updates and enhancement.

Find out more at Malta Enterprise website.

SME Consultancy Services Grant Scheme

Grant value is set at a lump sum of €4,000 representing an aid intensity of 80% of the eligible costs

Target Group

• Micro Enterprises
• Small Enterprises
• Medium-sized Enterprises

This scheme supports the development of:

• Business Plan
• Feasibility Study
• Organisation and Operations Review
• Process and Systems Review

Eligible Actions

Procurement of external consultancy services for the purposes of:

• The potential re-engineering the organisation, operations, processes or systems aimed at rendering it more efficient and resulting in the development of the organisation; or
• The potential of the organisation to take on proposed investment initiatives aimed at the potential future business growth, and at rendering it more competitive.

Find out more at Business Enhance website.

e-Commerce Grant Scheme

Maximum grant of €5,000, part-financing up to 50% of eligible expenditure

Target Group

• Micro Enterprises
• Small Enterprises
• Medium-sized Enterprises

Eligible Costs

To be eligible the end product shall be an e-commerce website/mobile application that will include a Content Management System that must comply with the current industry standard e-commerce security practices, will incorporate an online product/service catalogue, a shopping cart, a payment or booking system and an integrated e-commerce payment gateway enabling online payments and support at least basic analytics.

• Domain name registration
• Hosting fees
• Content Management System (CMS) software including required licenses
• e-commerce Website and/or Mobile Application design in line with the brand identity of the organisation
• Shopping Cart integration
• Other Set-up fees (including setting up and configuration of the CMS system, system design, customisation and development, integration with payment system/s, implementation of the required security features, testing and go live).

Find out more at Business Enhance website.

Get in touch to find out more about the government grants and how ICON can support your business ideas.