Scheme Overview
The Culture and Creative sector product seeks to enhance access to bank finance for SME investments whose activities are based on cultural values and/or artistic and other creative expressions.
Loan amount between €10,000 and €1,000,000
Maximum term of 10 years
What can the MDB SGS-CC Business Loan cover?
The development, creation, production, dissemination and preservation of goods and services which embody cultural, artistic or other creative expressions, as well as related functions such as education or management. The cultural and creative sectors include inter alia architecture, archives, libraries and museums, artistic crafts, audiovisual (including film, television, video games and multimedia), tangible and intangible cultural heritage, design, festivals, music, literature, performing arts, publishing, radio and visual arts.
Terms & Conditions
| Product Name | SME Guarantee Scheme – Culture and Creative |
| Objective | To enhance access to bank finance for business investments towards cultural and creative sectors whose activities are based on cultural values and/or artistic and other creative expressions |
| Structure | The MDB provides an uncapped guarantee of 80% on the loan portfolio of the financial intermediary. The scheme will be open to all accredited credit institutions. |
| Portfolio Volume | €80,000,000 (to be allocated among accredited credit institutions on a first come first served basis). |
| Last date for inclusion of loans under the scheme | 19/04/2027 for Culture and Creative products. |
| Term of Loan | Maximum 10 years. |
| Moratorium | Maximum 12 months from first disbursement date (at the start of the repayment period). A longer moratorium, but not exceeding 24 months, may be granted on a case-by-case basis subject to MDB approval. |
| Size of Loan | Facilities of €10,000 up to €1,000,000, The minimum loan size may vary from one financial intermediary to another. |
| Security | Take up of collateral is restricted to a maximum of 20% at portfolio level. |
| State Aid Regime | De Minimis. |
| Loan eligibility | The latter activities include investment related to the development, the creation, the production, the dissemination and the preservation of goods and services which embody cultural, artistic or other creative expressions, as well as related functions such as education or management. |
| Eligible applicants | Applicants must be viable SMEs, small mid-caps and small public enterprises operating in eligible NACE code sectors, thus referring to activities identified as being part of the CCS as listed in Sub-Annex 1 (Eligible NACE Codes) of the EIF’s Cultural and Creative Sectors Portfolio Guarantee Product. |
| Restricted and Prohibited Activities | Click here for the full list. |
| Benefits | Besides accessing finance not otherwise available, eligible SMEs benefit from: a longer repayment period, lower collateral requirements and lower interest rates as a result of the credit risk protection from the MDB’s guarantee. |
| Accredited credit institutions | APS Bank Bank of Valletta HSBC Bank Malta |