Izola Bank launches financing product to help businesses

Izola Bank has launched Izola Boost, which is designed to support local clientele experiencing cash flow issues due to the Covid-19 crisis.  

Andrew Mifsud, CEO of Izola Bank explains: ‘We are committed to supporting our business clients, making sure that they have access to much-needed funding to keep their companies operational. Izola Boost is designed to aid Maltese businesses that are seeing their cashflow disrupted as a result of the COVID-19 outbreak. We are pleased to be working with the Malta Development Bank and offering this lifeline to our business clients who urgently need this service.’

Izola Boost is supported by the Malta Development Bank, through its MDB COVID-19 Guarantee Scheme which offers participating banks a bank guarantee of €350,000,000, covered by a government guarantee issued by the Ministry of Finance. Approved by the European Commission under the Temporary Framework for State Aid, this scheme will see the Malta Development Bank take on 90% of the risk of each facility.

Mifsud said the new initiative will provide businesses with access to critical liquidity, helping to ensure their survival. Businesses will also see a standard 6-month moratorium on both capital and interest payments, with the possibility of this being extended up to one year, approved on a case by case basis. This service is designed to help relieve unexpected pressure that Maltese businesses are now facing.’

Loan features

Financing SMEs – up to €2 million (up to €10 million subject to MDB Approval)

Large Enterprises – up to €5 million (up to €25 million subject to MDB Approval)

Interest Rate 3% per annum over the three-month Euribor (no 0% flooring applicable).

Interest Rate Subsidy Clients will also benefit from any Government Interest rate subsidy.

Guarantee Fee Guarantee fees as approved by the EU Commission apply.

Loan Term Minimum 18 months.

Maximum 48 months.

The term can be increased to 72 months with additional terms and conditions.

Moratorium 6 months (Possible extension to 1 year depending on specific criteria.)

Application End Date 31 December 2020.