The extended Rent Subsidy Scheme will see Malta Enterprise doubling its assistance for eligible companies. The eligible support will increase from €25,000 to €50,000 per undertaking.
This was announced by Enterprise Minister Miriam Dalli and Malta Enterprise CEO Kurt Farrugia during a visit to Ta’ Mananni, in Mqabba, accompanied by founder Christian Cassar. The microenterprise manufactures and distributes traditional local food.
Over the last two years, 27 companies were assisted under the scheme against an investment of over €600,000.
The renewed Rent Subsidy Scheme will widen the list of eligible activities to help offset the effect that the cost of goods and imports has had on companies. Specifically, companies may be supported in the renting of space during a period of restructuring and consolidation of the business operation.
Minister Miriam Dalli explained that the aim of this scheme is to assist businesses in meeting the commercial challenges due to the increase in logistical costs.
“Throughout the challenges of the past three years, the government sought to stabilise the situation as much as possible for businesses. One of those challenges was the increased transport and logistical costs, as well as a sudden increase in demand at a time when supplies became limited. Many companies are buying or producing in bulk to meet this demand but need a place where to store their products. This initiative will help businesses reduce some of the renting costs they are currently experiencing,” Minister Dalli explained.
Malta Enterprise CEO Kurt Farrugia said that, “The extension of this scheme is an example of our willingness to adapt to the feedback which we are given by companies to make schemes which make sense for businesses. We are always open to feedback, as well as constantly working on getting a thorough understanding of what is affecting our business community in order to be able to support them as best as we can.”
Ta’ Mananni owner Christian Cassar, who supplies over 80 stores around Malta and Gozo, noted that the support through this scheme helped his microenterprise find its feet as it faced challenges that had been brought about by the pandemic. Mr Cassar added that such support allows businesses to further invest in their workforce.
The Rent Subsidy Scheme supports undertakings that require industrial space as a temporary, or permanent, solution to support their business activity. The scheme is applicable to businesses engaged in manufacturing, maintenance, artisanal activities, industrial packaging activities, repairs of motor vehicles, repair of machinery and equipment and other industrial activities.
Aid is awarded in the form of a cash grant or in the form of a tax credit.
The total aid which may be granted to a single undertaking over a twelve-month period will be capped at €50,000. The support may be approved for a period of three consecutive years, thus the maximum aid per business would be that of €150,000. The support may be extended for a further three years on the basis of a new application if the applicant has not generated a reasonable return but can justify a sustainable business thereafter (that is if the additional support is approved).
