Bank of Valletta has launched its latest scheme BOV-MDB COVID-19 Assist.
This scheme is aimed at assisting local businesses facing unprecedented disruptions bought about by the COVID-19 pandemic.
Eligible businesses are SMEs which fall within the meaning of Commission Regulation (EU) EU No.651/2014 of 17th June 2014, and Large enterprises.
The repayment terms are 18 to 72 months inclusive of moratorium. The moratorium is 6 months (can be extended to 12 months depending on particular circumstances of the business). The interest rate is all-inclusive starting from a fixed rate of 2.5% for the first two years at no additional fees and charges. Business customers may also be eligible to a government refund of a two-year interest rebate.
Eligible costs include salaries of employees, including social and health security payments and the acquisition of material and stock to sustain the business. The scheme will also take into consideration the lease of establishment including rental costs and utilities. Unpaid invoices due to a decrease in business revenues in respect of working capital and other similar commitments are also included. Investment expenditure is considered only if they were contracted prior to the approval of the Scheme. Maintenance costs are considered.
The interest rate, which will be inclusive of the guarantee fee, may vary depending upon the size of the enterprise and the term of the loan.
This scheme runs up to 31 December 2020.
If you would like to check if your business is eligible or would like to know more about this scheme please send us an email on [email protected] and we will get in touch.