The government is to make €20 million available in bank guarantees on loans for micro-businesses, whether existing or new, Finance Minister Tonio Fenech announced this evening.

He said the new MicroGuarantee Scheme will be available to firms employing up to 10 persons which apply for loans on investment or working capital.

The firms will be granted guarantees on loans of between €2,500 and €100,000 from commercial banks. The guarantees will reach 90% of the loans. Those qualifying will be required to pay a premium on interest rates,

At the same time, Mr Fenech said, the MicroInvest scheme, which provides a tax credit on 40% of new investment and new jobs, will be retained for another year. So far, he said, more than 700 firms had invested €13 million and created 300 new jobs as a result of this scheme.

Mr Fenech said the government will also allocate €550,000 for improvement works on industrial zones which are not under its own direct responsibility.

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