MDB Sustainability: SGS-S and GCLS-S

Scheme Overview

The Sustainability themed products seek to increase MDB’s positive environmental impact in Malta.

What can the MDB Sustainability themed products cover?

Investment in measures directed towards:

  • Green investment (climate change mitigation, climate change adaptation, transition to a circular economy, investments related to environmental impact and sustainable management of natural resources, protection and restoration of biodiversity and ecosystems).
  • Social Accessibility Investment
  • Any investment by SMEs classified as green based on an Eco-label, Sustainable/Green Business model or an environmentally certified enterprise.
 SGS – SGCLS – S
 The MDB provides an uncapped guarantee of 80% on a portfolio of loans generated by the intermediary partner banks.  The MDB provides a 60% portfolio guarantee on the commercial bank’s 50% share of each lending proposal.  
 Loan amount – between €10,000 and €1,000,000.  Loan amount – between €1,000,001 and €10,000,000.  
 Maximum term of 10 years.  Maximum term of 15 years.  

Link to Incentive Guidelines.

Terms & Conditions

Product NameSME Guarantee Scheme –
Sustainability
Guaranteed Co-lending Scheme -Sustainability
ObjectiveTo enhance access to bank finance for business investments towards climate action, and environment sustainability. This includes investments for climate action purposes, and environmental sustainability, as well as green investments in agriculture and forestry and in social accessibility investment. Moreover, it also includes any investment by eligible beneficiaries classified as green, based on an Eco-label, Sustainable/Green Business model or an environmentally certified enterprise.
StructureThe 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.The MDB provides a 60% portfolio guarantee on the commercial bank’s 50% share of each lending proposal. The scheme will be open to all accredited credit institutions.
Portfolio Volume details The loan portfolio allocated to the Sustainability schemes is to be apportioned based on the take-up of loans under the SGS-S and GCLS-S accordingly. The portion of the loan portfolio reserved for the SGS-S and GCLS-S will be apportioned by the MDB between the accredited intermediary partner banks participating in the schemes on a first-come-first-served basis.
Last date for inclusion of loans under the scheme19/04/2027 for Sustainability products.
Term of LoanMaximum 10 years.Maximum 15 years.
MoratoriumMaximum 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 LoanFacilities of €10,000 up to €1,000,000. The minimum loan size may vary from one financial intermediary to another.Facilities of between €1,000,001 up to €10,000,000.
SecurityTake up of collateral is restricted to a maximum of 20% at portfolio level.Minimum of 20% upfront cash contribution.
State Aid RegimeDe Minimis.De Minimis regulation and/or the General Block Exemption Regulation (GBER).
Loan eligibilityThe purpose of the financing covers a wide spectrum of possible activities including:   (a) Investment in measures directed towards:   Green investment (climate change mitigation, climate change adaptation, transition to a circular economy, investments related to environmental impact and sustainable management of natural resources, protection and restoration of biodiversity and ecosystems). or satisfying the:   Green Investments in Agriculture and Forestry criteria (Sustainable forests and other climate mitigation investments, investments in the 2 L 124/36 – Commission Recommendation of 6 May 2023 concerning the definition of micro, small and medium-sized enterprises (notified under document number C(2003) 1422) development or adoption of sustainable and organic agricultural practices).   Social Accessibility Investment criteria (investments to enhance accessibility of services, products and infrastructures and to develop assistive technologies as well as for making the organisation and its premises accessible for customers and employees with disabilities and/or impaired function.   (b) Any investment by SMEs classified as green based on an Eco-label, Sustainable/Green Business model or an environmentally certified enterprise.
Eligible applicantsThe scheme is open to all SMEs, small mid-caps and small public enterprises in all economic sectors except the excluded and prohibited activities of the MDB and the EIF. Furthermore, SMEs small mid-caps and small public enterprises active in sectors specifically excluded in Article 1 of the de minimis Regulation, are ineligible.
Restricted and Prohibited ActivitiesClick here​ for the full list.
BenefitsBesides 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 institutionsAPS Bank
Bank of Valletta
HSBC Bank Malta