THE MDB SGS BUSINESS LOAN FOR CULTURE AND CREATIVES AIMS TO HELP ARTISTS, CREATIVES, AND CULTURAL OPERATORS ACCESS FINANCE ON MORE REALISTIC TERMS
Access to finance is one of the barriers Malta’s cultural and creative sectors routinely face. Now, APS Bank has launched a solution — a newly launched MDB SGS Business Loan that’s aimed squarely at that gap.
The loan has been introduced in collaboration with the Malta Development Bank (MDB), and retains the same product features of the existing Small & Medium Enterprises (SME) Guarantee Scheme while applying them to the culture and creative professions.
The scheme is intended to improve access to bank finance for businesses that are built around cultural value, artistic practice and creative expression. In reality, its scope is much wider than the phrase ‘arts sector’ may traditionally suggest: self-employed individuals are included, as are SMEs and small public enterprises.
In practice, the scheme can apply to heritage bodies, museums, publishers, journalists, architects, performers, filmmakers, musicians, broadcasters and game developers, and to the wider network of activity around them. This may include art galleries, specialist printers, book retailers, costume and scenery rental operators, and musical instrument repairers.
The loan comes with financial terms that make the product more accessible than standard business lending. Secured loans are offered at a variable interest rate of 3.00% per annum, inclusive of the MDB guarantee fee of 0.72%, while unsecured loans carry a variable rate of 3.50% per annum, also inclusive of that fee. Borrowers can apply for between €10,000 and €1 million, over a term of up to 10 years. Fees are reduced and applicants are required to cover a minimum of 10% of total project costs from their own funds, a substantially lower threshold than usual. The loan would be approved under the MDB SME Guarantee Scheme – Creative and Cultural and benefit support from the European Union and the EIF under the InvestEU Fund.
This lower entry point is significant given that one of the sector’s difficulties is the ability to access funding under terms that match the realities of creative work, particularly in fields where revenue cycles and business models do not always look typical on paper.
For more information visit apsbank.com.mt/mdb-sgs-business-loan or call the APS Contact Centre on +356 2122 6644 (Mon – Fri, 8am -9pm).
Caution! Borrowing money costs money. Approved and Issued by APS Bank, APS Centre, Tower Street, Birkirkara BKR 4012, Malta. APS Bank plc is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994 and to carry out Investment Services activities under the Investment Services Act 1994. The Bank is a participant in the Depositor Compensation Scheme established under the laws of Malta. Applications are subject to the Bank’s lending criteria. Terms and conditions apply and are available on request.
