Self-employed people and businesses employing up to 20 staff will be able to obtain guarantees for bank loans of up to €100,000 for new ventures or expansion under the Micro Guarantee Scheme launched yesterday.

Small businesses were helping to shield the economy from the impact of the international economic turmoil...

Loans may be taken out to fund the purchase of assets or related working capital against 10 per cent collateral.

The scheme, administered by Malta Enterprise, will be available from August 1. Bank of Valletta, Banif Bank and Lombard Bank have confirmed their participation.

One of the pledges in Budget 2012, the Micro Guarantee Scheme is designed to support loans to finance outlays approved by Malta Enterprise. Applicants may then turn to a bank of their choice.

Just under 2,800 business owners have invested more than €160 million under schemes like MicroInvest, MicroCredit and the European Funds for Industry, Finance Minister Tonio Fenech said yesterday.

Small businesses were helping to shield the economy from the impact of the international economic turmoil and were an important source for job creation.

Small Business Minister Jason Azzopardi added that until the end of June, more than 300 firms – including 252 microbusinesses – had borrowed around €30 million under the MicroCredit scheme, channelled into investment reaching €47.1 million.

Out of the 1,705 applications for benefits offered under the MicroInvest scheme, 408 were Gozitan businesses. Together, these firms, which employ 358 people, received over €8 million in tax credits.