Small business owners are being crippled by commercial rents and livelihoods are at risk unless the government steps in to help ease rental burdens, the Malta Chamber of SMEs has warned.

In a statement on Saturday, the Chamber of SMEs said that many members found themselves in a worse situation now than when shops were closed due to coronavirus restrictions, as trade was slow or non-existent while costs had increased.

Aid being given out is “not enough”, the Chamber said. “Employees are being made and will continue to be made redundant as the economy is stagnant and businesses perish. This damage will take many years and hard work to recuperate.”

It reiterated the need for a rent subsidy scheme – a proposal the Chamber had made weeks ago. The proposal would see landlords, commercial tenants and the government share the financial burden of rent during the crisis.

The scheme would be approved under revised EU state aid rules and would mirror what was happening in other EU member states, it said.

It also noted that Malta had yet to say how it intended to use EU grant money to help flailing businesses.

The Chamber is the second trade lobby group to sound the warning about rent costs threatening livelihoods. Last week, the Association of Catering Establishments said that many restaurant owners were having to deal with inflexible landlords demanding full rent and that this would lead to several eateries going out of business.

The ACE had urged the government to regulate the commercial rental sector and force landlords to charge fixed prices based on location and size.