€200M Towards Businesses and the Self-Employed
The measures announced for the coming three months as part of the plan for economic regeneration, more than €200 million are being dedicated solely for businesses and the self-employed.
This was explained by Minister for the Economy, Investment and Small Businesses Silvio Schembri when providing details on the incentives aimed at helping regenerate the economy through increased demand for products and services for the business community to get back on its feet.
Minister Schembri said that during the three months of summer, businesses and self-employed can benefit from an average record sum of €18,000 of direct financial assistance when applying for all the main measures with Malta Enterprise. This is the first time that our businesses and self-employed can benefit from such a substantial amount through direct incentives.
‘This means that those businesses which are taking the leap forward by re-organizing their operations, training their employees and pushing themselves forward in exploring new ventures will fare four times better than those who opt to stay closed. Thus, through the economic regeneration plan, businesses will benefit from a stimulus, to re-experience economic activity and get back on track,’ said Minister Schembri.
The €200,400,000 allocated translate into:-
- the commercial rent aid amounting to €50,000,000;
- the refund of electricity bills through the allocation of €30,000,000;
- the waiver of licenses with the sum of €5,000,000;
- the extension of the COVID Wage Supplement which amounts to €91,000,000.
- tax credits converted into grants which amount to €5,000,000
- skills development scheme amounting to €5,000,000;
- the sustainability of our local industry through the allocation of the sum of €5,000,000;
- modernization of machinery amounting to €4,000,000;
- the reengineering of business operations by allocating €2,500,000;
- the decrease in port charges amounting to €2,500,000;
- sustaining digital promotion through an investment of €400,000;
Through these measures businesses can benefit from each measure a maximum of the following amounts:
Measure -> Average Maximum amount of benefit
Extension of COVID Wage Supplement -> €4,550
Restart grant -> €2,550
Refund of electricity bills -> €1,500
Waiver of licenses -> €415
Tax credits converted into grants -> €1,615
Skills Development Scheme -> €5,000
Re-engineering of operations -> €2,500
Average of Maximum Record Sum = €18,080
This substantial economic injection will bring about a positive impact on domestic demand, which in return will result in an increase in sales, demand for products and local services and better liquidity for our businesses.
The measures put at heart small businesses and enterprises, by decreasing operative expenses whilst bolstering them through direct financial aid, until the latter is no longer required when a substantial revenue starts to be generated.
‘We are now embarking upon the second phase of the economic strategy plan designed three months ago. During this phase, I encourage all businesses to embark on this journey together, throughout which they shall find us as a Government as a shoulder to lean on. From this point onwards, our attention is shifting on incentivising the economy in order to instil again that much needed confidence factor amongst our population and return to our normal way of life.
I am looking forward to once again witnessing the sense of optimism in our employees, who have always worked hard, invested and made sacrifices for a better quality of life. I, therefore, encourage businesses and self-employed to apply with Malta Enterprise for these direct financial assistance schemes once they are open and take advantage of such financial aid that is being provided in our ongoing pursuit to safeguard our businesses, self-employed and employees,’ said Minister Schembri.
Minister Schembri said that this plan was part of an economic strategy designed way back in March to help the economy recover back where it was paused in March after the Government had launched a number of short to medium-term measures to sustain business and self-employment through the COVID wage supplement and other credit measures.