New funding opportunities under the European Regional Development Fund (ERDF) 2021-2027 programming period have been announced by the Measures and Support Division within the Office of the Prime Minister, as well as additional support measures under Malta’s Recovery and Resilience Plan.

Introduced on 3rd March 2025, these schemes replace previous grant initiatives and introduce key updates to eligibility criteria and administrative processes, offering fresh incentives for startups and small to medium-sized enterprises (SMEs) seeking to expand, innovate, and embrace digital transformation.

The newly consolidated SME Enhance Scheme combines the former SME Enhance (GBER), SME Enhance (de minimis), and Start-Up Enhance programmes into a single investment scheme. Designed to facilitate growth, this initiative provides financial support for the acquisition of productive tangible and intangible assets, covering expenses related to business expansion, diversification, and innovation, as well as initial investments.

Eligible businesses can benefit from a minimum grant of €10,000, with a maximum grant value of €128,400, which includes an additional 7 per cent flat rate to cover indirect costs associated with the investment. The aid intensity varies depending on the applicable state aid regime, ensuring tailored support for different business needs.

Recognising the critical role of technology in modern business, the Digitalise Your SME Scheme encourages SMEs to invest in hardware, software, and digital solutions that enhance operational efficiency, productivity, and customer experience. This scheme is particularly relevant for businesses looking to adopt automation, e-commerce platforms, or advanced cybersecurity measures.

Similar to the SME Enhance Scheme, the minimum grant threshold is set at €10,000, with a maximum grant of €128,400, including the 7 per cent indirect cost allowance. Under the de minimis state aid rules, eligible businesses can receive funding covering up to 50 per cent of costs in Malta and 60 per cent in Gozo, while startups can secure up to 60 per cent in Malta and 70 per cent in Gozo.

The updated schemes introduce several important modifications to ensure sustainable and targeted financial support.

First, applicant eligibility has been refined, with businesses now required to demonstrate a total eligible cost-to-net assets ratio of at least 2 per cent. Companies with negative net assets—except for qualifying startups—will be deemed ineligible.

Second, capping mechanisms have been introduced to align grant allocations with financial stability. For standard SMEs, if net assets are less than 40 per cent of the total eligible cost, the grant will be capped at 250 per cent of net assets. Startups with net assets below 20 per cent of the total eligible cost face a higher cap of 500 per cent of net assets, provided they can furnish a financial guarantee.

Third, a mandatory financial viability check will apply to applications requesting more than €60,000 in funding. Businesses can perform a preliminary self-assessment using an online tool before formal submission.

Finally, while project timeline extensions are permitted in six-month increments, each extension will result in a reduction of the original grant amount, encouraging timely project completion.

These ERDF grants present a significant opportunity for Maltese SMEs to strengthen their market position, adopt cutting-edge technologies, and improve operational resilience. By facilitating access to funding for digital transformation and business expansion, the schemes align with national and EU objectives to foster innovation-driven economic growth.

Interested enterprises should review the official guidelines published by the Measures and Support Division, assess their financial eligibility, and prepare the necessary documentation, including detailed business plans and cost breakdowns. Given the competitive nature of such funding programmes, early preparation and submission are advisable.

As Malta continues to prioritise SME development and digital advancement, these new grant schemes serve as a vital resource for businesses aiming to scale efficiently and sustainably.