This scheme will assist companies and self-employed to start, develop or expand further their operations by renting property from the private sector – Minister Silvio Schembri
Minister for the Economy, Investment and Small Businesses Silvio Schembri launched the Industrial Rent Subsidy Scheme 2020 with a budget allocation of €2,500,000.
The purpose of the scheme, which will be applicable between the 1st February until 31st December 2022, is to financially assist new businesses and self-employed that would like to rent an industrial space from a third party to commence a new business activity, implement growth plans, handle an increase in orders and implement innovations to increase efficiency. Companies, cooperatives and registered self-employed can benefit up to €75,000 over 3 years in rent subsidy through an aid intensity of up to 50% of cost.
Minister Schembri said that the government is ensuring that commercial activity is not neglected during the COVID-19 pandemic. ‘We are now facing a new normal to which we must adapt to. This scheme will assist companies and self-employed to start, develop or expand further their operations by renting property from the private sector. This rent subsidy will serve as an opportunity to ease burdens the business community faces with regard to renting premises, and allow them to generate economic activity in return for investment and the creation of new jobs,’ said Minister Schembri.
The applicants eligible for this scheme must be engaged in the following operational activities and sectors: manufacturing, repair of machinery and equipment, maintenance and repairs of motor vehicles and other industrial activities.
Through the application, the applicant must demonstrate that during the 2 fiscal years preceding the year in which the application is submitted, they employed one hundred (100) or less persons on a full-time contract. Furthermore, that its annual turnover did not exceed €10 million in the two 2 fiscal years preceding the year in which the application is submitted.
Malta Enterprise CEO Kurt Farrugia explained that the Malta Enterprise will determine the value of aid, if any, which will be awarded to the applicant.
‘The corporation may withhold all, or part of, the assistance, if the undertaking (at group level) is subject to an outstanding recovery irrespective of any other incentive awarded by the corporation. The outcome shall be communicated to the applicant, and successful applicants will be issued a letter of approval specifying the terms and conditions of the award. At a time when it is becoming challenging for the government to itself identify premises for rent for new businesses, the scheme will encourage businesses to seek rental premises from a third party, who is not related to the business, and subsequently enable them to continue pursuing their economic activities. Meanwhile, the Government will further assist through the rent subsidy, said Farrugia.
The application form can be downloaded from the Corporation’s Client Portal: https://clientportal.maltaenterprise.com/login
Guidance on the filling of the application form may be obtained by contacting Business First during office hours or via email email@example.com