MDB-Xjenza Malta joint initiative helps Maltese innovators bring ideas to market

Innovative start-ups in Malta can access dedicated loan support to help them move from idea to market, through the Go-To-Market Loan Assistance Programme, a statement by the Malta Development Bank (MDB) said Monday.

The programme was presented by MDB at the launch of Xjenza Malta’s updated FUSION Go-To-Market initiative; a support programme that helps Maltese start-ups and research-based innovations move from prototype stage towards market readiness, commercial validation and access to finance.

MDB said it is providing financial support to innovative start-ups that are already engaged in Xjenza Malta’s programmes and want to commercialise their innovations.

The scheme works in collaboration with local commercial banks, to address a persistent barrier facing innovative start-ups: access to finance. It is designed for enterprises that may not meet standard lending requirements, but whose ideas have real commercial potential. At its core, the Go-To-Market Loan Assistance Programme shifts the risk equation.

MDB said it provides an 80% guarantee on loans extended by participating commercial banks, with the banks retaining the remaining 20%. This means that commercial banks can say yes to innovative start-ups that they may otherwise not have been able to support.

This includes those whose main assets are intellectual property or research results, rather than physical collateral. On top of the loan guarantee, Xjenza Malta provides a grant support package made of three components: an interest rate subsidy, front contribution support to reduce the upfront payment banks typically require, and support to reduce collateral requirements.

MDB Chief Executive Officer Alison Micallef said the Go-To-Market Loan Assistance Programme tackles the financing obstacles that too often stop good ideas in their tracks. “This is a clear example of how MDB adds value: working with partners to open up financing that supports early-stage innovative businesses as they move towards commercial growth,” said Micallef.

Chairperson Leo Brincat concluded: “Malta’s ability to compete in the years ahead will depend increasingly on its ability to turn new ideas into sustainable businesses. Development finance has an important role to play here, and MDB is helping build a stronger innovation ecosystem in Malta.” 

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