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Access to Finance/Allocation of Industrial Space Application Form

Issue Date: 18th April 2011Version: 3.05 (update 24/08/2016)

Applications should be signed and submitted to:

Business FirstGwardamangia HillPieta’ , MEC0001

Email: [email protected]

Tel: 144

It is recommended that you contact Business First on 144 or your representative at Malta Enterprise prior to compiling and submitting this application to receive preliminary guidance on whether your application has the potential to be considered.

mailto:[email protected]

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Application for Access to Finance and/or the allocation of Industrial SpaceVersion 3.05

INTRODUCTION

This application should be compiled for the request of Access to Finance instruments provided under the Business Promotion Act (Loan Interest Rate Subsidies, Soft loans, and Loan Guarantees) and/ or the application for the allocation of Industrial Space.

The application is divided in seven parts:

Part 1 – Details of Business and Promoters

Part 2 – Project Details

Part 3 – Request for Financial Assistance

Part 3A– Application for Loan Interest Rate Subsidy

Part 3B – Application for Soft Loan

Part 3C – Application for Loan Guarantee

Part 4 – Request for the allocation of Industrial Space

Part 5 – Annexes

Part 6 – Declaration by Certified Public Accountant

Part 7 – Declaration by Applicant

Please note that:

Access to Finance instruments may only be approved to enterprises eligible for such aid as defined in the Business Promotion Act.

Allocation of Industrial Space is limited to qualifying enterprises requiring such space for eligible activities as defined by the Business Promotion Act.

This Application Form and any attached documents will be treated in confidence throughout and after the project evaluation process.

Only Application Forms that include all relevant supporting documents will be accepted and evaluated. All replies must be clearly explained and substantiated. Only typed Application Forms will be accepted. Should the application be hand-written or should the format of

the application form be altered, the application form will not be evaluated. Applications received from undertakings established in Malta, that have outstanding liabilities in respect of

Income Tax, Value Added Tax, Final Settlement System (FSS) and Social Security Contributions (SSC) will not be processed. Applications from such undertakings must include confirmations issued by the VAT department and the Inland Revenue Department confirming their status as specified in the annexes section of this application form.

When compiling this application, it is recommended to:

Provide realistic projections, milestones, and deliverables; Provide specific details; Invest adequate time and effort to compile and complete the application; and Demonstrate why the application should be accepted.

Personal Data Protection

Any personal information collected in this form will be used for establishing the aid which may be granted to the applicant. All information will be processed in accordance with the Data Protection Act, Cap 440 of the Laws of Malta and shall be treated in confidence. The information contained in this application form will be processed by Malta Enterprise and may be forwarded to third parties appointed by Malta Enterprise to evaluate, administer, implement, monitor, or audit any part of this incentive. You have the right to access, rectify, and, where applicable, the right to erase personal data concerning you. Malta Enterprise guarantees fair processing in respect of your personal information. Malta Enterprise will solely send you information related to the Corporation’s services.

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PART 1 – DETAILS OF BUSINESS AND PROMOTERS

1.1 Applicant’s business name, address, and basic detailsDetails of the Enterprise submitting this application.

a. Registered Name1

b. Enterprise Form Choose an item.Other:

c. If, as indicated in question (b), the applicant is quoted on a stock exchange, name the Stock Exchange:

d. Registration Number2

e. Contact Address

f. Web page Address

g. Telephone Number

h. VAT Number

i. Year Established

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1.2 Contact personContact details of the person to whom communication regarding this application should be addressed.

a. Contact Name & Surname

b. Designation

c. Telephone Number

d. Mobile Number

e. Email Address

1 Registered Name: Make sure that the company name is the exact registered name (as defined in the Memorandum and Articles). In the case of partnerships and co-operatives, the name outlined in the deed of partnership should be used in this section. In the case of Self Employed person, the name of the sole trader shall be inserted. If the business trades under a different name, please also provide this name. If the application relates to a business that is still in formation, the details of the parent company or the main promoter should be entered.

2 Registration Number: The registration number is the official registration number of the co-operative, company, or partnership as defined in the Companies Act – Chapter 387 of the Laws of Malta. In the case of Self Employed, this should be the corresponding Identity Card Number.

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1.3 Enterprise Structure Details of the ownership and control structure of the Enterprise submitting this application.

a. In Annex 7 – Director and Shareholders, provide details (ID or Passport Number, Name, Date of birth or Incorporation, and Address) of every Director and Shareholder, and a profile of every Director holding 25% or more control in the applicant Enterprise.

b. Does the applicant Enterprise form part of a Group? Yes SELECT YES OR NO

If Yes, please attach an Organisation chart of the Group Structure in Annex 13 – Supporting Documentation.

c. Does the applicant Enterprise or any of its Directors or Shareholders have any controlling interest in any other business?

Yes SELECT YES OR NO

If Yes, please elaborate. The details provided below should reflect the details provided in the Annex 1 - Enterprise Size Declaration.

d. Provide details of any planned change in ownership.

1.4 Current Business Activity – Provide a brief history of the business and describe the current activity in terms of the Enterprise’s current products, services, and markets.

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PART 2 – PROJECT DETAILS

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2.1 Project Description – Describe the proposed project and how it links with the investment costs specified in Annex 2 – Investment Cost Breakdown (on spreadsheet file provided). Elaborate on the project’s objectives and expected benefits to company.

2.2 Applicant’s Experience and Track Record – Describe the applicant’s experience in the relevant industry and in similar projects.

2.3 Proposed Project Financing Explain how the project will be financed. This may include funding from own financial resources, new bank loans, and/ or State funding. The total of the table below should be equal to the investment costs quoted in Annex 2 - Investment Cost Breakdown.

Source Value

Own financial resources € 0

New bank loans € 0

Other sources* € 0

Total Investment € 0

* Please specify

2.4 Other National/ European funding for this project?a. Has an application been made for assistance from any other

National/ European funding program for this project?Yes SELECT YES OR NO

b. Has any assistance requested been approved? Yes SELECT YES OR NO

c. The applicant should highlight any other National and/ or European funding applied for in relation to any part of this project. The information provided should give details of the approving Body, any application reference number/s, application date/s, financial instrument concerned, and funding requested and approved.

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2.5 Expected Project Results – Financial Performance vii. Describe and justify the expected project results and projections illustrated in Annex 3 - Profit

& Loss Statement, Annex 4 - Balance Sheet, and Annex 5 - Cash flow Statement, elaborating on the contribution of the project to the financial performance and position of the applicant Enterprise. Clearly list any assumptions made.

2.6 Expected Project Results – Employment Elaborate on the contribution of the project to the human resources of the enterprise.

a. Justify the expected change in employment as illustrated in Annex 3 - Profit & Loss Statement.

b. Describe the skill base categories of the human resources required for the project.

2.7 Markets This section analyses the market impact of the proposed project

a. Provide an indicative breakdown of the current and projected turnover by geographic region within three years. The total turnover levels in the table below should match the total turnover levels in Annex 3 - Profit & Loss Statement.

MarketAnnual turnover as per

latest Audited/ management accounts

Forecasted turnover for Year 3

Malta € 0 €0

European Union € 0 € 0

Middle East € 0 € 0

Africa € 0 € 0

Americas € 0 € 0

Asia € 0 € 0

Other € 0 € 0

TOTAL €0 €0

b. Describe how the proposed project will support growth in the above market/s and expansion into new markets.

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c. Expand on the marketing strategy. Highlight any impact on competitors and dependence on suppliers. Also indicate the perceived risks and exit strategies or contingency plans.

2.8 Environmental, Regulatory, and Legal obligations Explain any environmental, regulatory, and legal obligations, together with the environmental impact of the project and any mitigation measures.

a. Does the proposed project raise any environmental concerns? This section should highlight the requirement of any Environmental Impact Assessments or Environmental Permits such as Integrated Pollution Prevention and Control (IPPC) Permits, the use of hazardous materials, and waste generation, recycling, and disposal.

b. Describe the energy consumption/ savings associated with the proposed project. This section should describe the energy consumption and saving initiatives to be implemented in the near future and other long term plans.

c. Describe any health & safety issues relating to the proposed project.

d. Describe any applicable industry standards in relation to the implementation of the proposed project.

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PART 3 – REQUEST FOR FINANCIAL ASSISTANCE

If no financial assistance is being requested,

proceed to Part 4 – Allocation of Industrial Space

Select ONE of the following three forms of financial assistance being requested from Malta Enterprise with respect to investment in plant machinery and equipment. Note that Loan Interest Rate Subsidies are the preferred form of assistance. Soft Loans and Loan Guarantees may only be approved in specific circumstances.

- Loan Interest Rate Subsidy - This incentive consists of a loan interest rate subsidy of 1%, 2%, or 3%. This interest rate subsidy may be granted on interest payable to a bank during the first five years of the duration of the loan taken to finance investment in plant and equipment.

Complete Part 3A – Application for Loan Interest Rate Subsidy

- Soft Loan - Soft Loans typically cover 33% (but in any case will never exceed 75%) of the investment in plant and equipment. Complete Part 3B – Application for Soft Loan

- Loan Guarantee - Guarantees may be utilised to secure a bank loan taken to finance investment in plant and equipment. The support is typically 50% (but in any case will never exceed 75%) of the bank loan.Complete Part 3C - Application for Loan Guarantee

Malta Enterprise will evaluate each application based on the risk entailed and economic benefit that the proposed project is expected to generate.

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Part 3A – APPLICATION FOR LOAN INTEREST RATE SUBSIDY

Complete this section only if you are applying for a cash grant in the form of loan interest rate subsidy on bank financing taken to finance the proposed investment in plant and equipment. This incentive consists of a loan interest rate subsidy of 1%, 2%, or 3%. The interest rate subsidy may be approved on interest payable to a bank during the first five years of the duration of the loan. The loan on which the interest subsidy is calculated is capped at a maximum of €7 million. Malta Enterprise will evaluate each application based on the risk entailed and economic benefit that the proposed investment is expected to generate.

3A.1 What is the value of the investment in plant and equipment on which loan interest rate subsidy is being requested?

€ 0

3A.2 What is the value of the bank loan to be taken to finance the above investment?

€ 0

3A.3 Have you already approached a bank for such a loan? Yes SELECT YES OR NO

3A.4 What was the outcome?

In Annex 9 - Bank Loan Sanction letter, attach a copy of the bank’s sanction letter or the bank’s confirmation that it is willing to favourably finance the investment in plant and equipment.

3A.5 What is the effective interest rate expected to be paid to the bank on the above-mentioned loan?

%

3A.6 What is the expected duration of such bank loan? months

3A.7 What are the expected repayment terms of such bank loan? Give details of any moratorium periods on capital repayments, repayment amounts, and frequency of payments.

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PART 3B – APPLICATION FOR SOFT LOAN

Complete this section only if you are applying for financial support in the form of a Soft Loan. Soft Loans may typically cover 33% (but in any case will never exceed 75%) of the investment in plant and equipment. Malta Enterprise will evaluate each application based on the risk entailed and economic benefit that the proposed investment is expected to generate.

3B.1 Give details of the front financing that will be utilised to part-finance the investment in plant and equipment. Examples of front finance include increase in share capital, shareholders loans, internal funds, and/or bank loans.

3B.2 Have you approached a bank to part-finance the proposed investment in plant and equipment?


3B.3 What was the outcome?

If the bank is willing to part-finance the investment in plant and equipment attach a copy of the bank’s sanction letter or the bank’s confirmation that it is willing to favourably part-finance the investment in Annex 9 - Bank Loan Sanction letter.

a. What is the effective interest rate expected to be paid to the bank on the above-mentioned loan?

%

b. What is the expected duration of such bank loan? months

c. What are the expected repayment terms of such bank loan? Give details of any moratorium periods on capital repayments, repayment amounts, and frequency of payments.

3B.4 What is the value of the Soft Loan being requested to end-finance the proposed investment in plant and equipment? Note, that soft loans are approved as end-finance.

€ 0

3B.5 Do you have any assets that can contribute as collateral on the requested funding?

No SELECT YES OR NO

If Yes, what is the estimated value? €

If Yes, explain the nature of such assets.

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PART 3C– APPLICATION FOR LOAN GUARANTEE

Complete this section only if you are applying for financial support in the form of a Loan Guarantee. Guarantees may be utilised to secure a bank loan. The support typically covers 50% (but in any case will never exceed 75%) of the bank loan required to finance the proposed investment in plant and equipment. Malta Enterprise will evaluate each application based on the risk entailed and economic benefit that the proposed investment expected to generate.

3C.1 Give details of the front financing that will be used to finance the investment in plant and equipment. Examples of front finance include increase in share capital, shareholders loans, or internal funds.

3C.2 Have you approached a bank to end-finance the proposed investment in plant and equipment?


3C.3 What was the outcome?

If the bank is willing to end-finance the project, attach a copy of the bank’s sanction letter or the bank’s confirmation that it is willing to favourably end-finance the investment in plant and equipment in Annex 9 - Bank Loan Sanction letter.

a. What is the value of the bank loan on which a Loan Guarantee is being requested?

€ 0

b. What is the effective interest rate expected to be paid to the bank on the above-mentioned loan?

%

c. What is the expected duration of such bank loan? months

d. What are the expected repayment terms of such bank loan? Give details of any moratorium periods on capital repayments, repayment amounts, and frequency of payments.

3C.4 What is the value of the Loan Guarantee requested? € 0Based on the values entered, the requested Loan Guarantee would cover !Zero Divide% of the bank loan.

3C.5 Do you have any assets that can contribute as collateral on the requested funding?


If Yes, what is the estimated value? €

If Yes, explain the nature of such assets.

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PART 4 – APPLICATION FOR ALLOCATION OF INDUSTRIAL SPACE COMPLETE THIS SECTION ONLY IF YOU ARE REQUESTING THE ALLOCATION OF INDUSTRIAL SPACE.

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4.1 Specify the size of the requested industrial premises:

Type of usageSize in square

meters

Production/ Operations 0m2

Warehouse/ Storage 0m2

Administration/ Offices 0m2

Open area 0m2

Other * 0m2

TOTAL 0m2

* Please specify

In line with the above, attach a plan layout (scale 1:100) of the requested industrial premises in Annex 13 – Plan Layout.

4.2 Specify the requirements of the requested industrial premises. Give details of any specific requirements such as building dimensions, number of floors, accessibility, finishes, water and electrical supply, and floor load bearing capability.

4.3 Specify the size of the current premises (if applicable):

Type of usage Privately Owned Leasehold Government

Property Total

Manufacturing/ Production 0m2 0m2 0m2 0m2

Warehouse/ Storage 0m2 0m2 0m2 0m2

Administration/ Offices 0m2 0m2 0m2 0m2

Showroom/ Retail Space 0m2 0m2 0m2 0m2

Open area 0m2 0m2 0m2 0m2

Other 0m2 0m2 0m2 0m2

TOTAL 0m2 0m2 0m2 0m2

x.

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4.4 Give details of the number of floors within your current premises.

4.5 Did you carry out a Space Utilisation Audit in respect to the proposed project? Yes SELECT YES OR NO

If Yes, please attach the Space Audit in Annex 13 – Supporting Documentation.

4.6 Explain the reasons for requesting the industrial premises. This may include expansion of the current operations, new lines of business, and physical restrictions associated to the current premises.

4.7 If applicable, outline the usage of the current premises in the eventuality that the additional industrial premises are allocated by ME/ MIP.

4.8 If applicable, have you approached a bank to part-finance the proposed project?


4.8 What was the outcome?

If the bank is willing to part-finance the project , attach a copy of the bank’s sanction letter or the bank’s confirmation that it is willing to favourably finance the project in Annex 9 - Bank Loan Sanction letter.

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PART 5 - ANNEXES

This section outlines the Annexes required for the complete submission of this application form. (Annex 1 to 8 are mandatory, Annex 9 to 12 are mandatory where applicable).

Annex 1 – Enterprise Size Declaration (on spreadsheet file provided). The electronic version of this document should be submitted on a CD-ROM enclosed with the application.

Annex 2 – Investment Cost Breakdown (on spreadsheet file provided). The electronic version of this document should be submitted on a CD-ROM enclosed with the application.

Annex 3 – Profit & Loss Statement (on spreadsheet file provided). The electronic version of this document should be submitted on a CD-ROM enclosed with the application.

Annex 4 – Balance Sheet (on spreadsheet file provided). The electronic version of this document should be submitted on a CD-ROM enclosed with the application.

Annex 5 – Cash flow statement (on spreadsheet file provided). The electronic version of this document should be submitted on a CD-ROM enclosed with the application.

Annex 6 – Audited/ Management Accounts – In case of registered companies, attach Audited/ Management Accounts for the previous three years. In case of self-employed applicants, attach a copy of the latest three Income Tax Returns.

Annex 7 – Directors and Shareholders – Provide details (ID or Passport Number, Name and Surname, Date of birth or Incorporation, and Address) of every Director and Shareholder and a profile of every Director holding 25% or more control in the applicant Enterprise.

Annex 8 – Bank References.

Annex 9 – Bank Loan Sanction letter – In the eventuality that a bank sanction letter is not available, please provide a statement from the bank as evidence that the bank considers favourably the financing of the proposed project.

Annex 10 – VAT compliance certificate – Enterprises established in Malta should attach a VAT compliance certificates issued by the VAT department not more than 6 months before of the submission of this application form.

Annex 11 – Income Tax compliance certificate – Enterprises established in Malta should attach a certificate issued by the Inland Revenue Department confirming that the applicant has no liabilities in respect of Income tax or is otherwise honouring an agreement for setting any outstanding amounts. The certification should have been issued in the six months preceding the submission of this application form.

Annex 12 – Final Settlement and of Social Security Contributions compliance certificate – Enterprises established in Malta should attach a certificate issued by the Inland Revenue Department confirming that the applicant has no liabilities in respect of the Final Settlement System (FSS) and of Social Security Contributions (SSC) or is honouring an agreement for setting any outstanding amounts. The certification should have been issued in the six months preceding the submission of this application form.

Annex 13 – Supporting Documentation (where applicable)

- Memorandum and Articles of association.- In case the applicant Enterprise is related to other enterprises, attach

an Organisation chart of the Group Structure. - Recent business plan and enterprise brochure. - Plan Layout (scale 1:100) of the requested industrial premises. - Space Utilisation Audit.

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PART 6 – DECLARATION BY CERTIFIED PUBLIC ACCOUNTANT

I declare that the financial projections attached to this application (Annexes 2, 3, 4 and 5) have been prepared on the basis of the assumptions stated and in accordance with the requirements of the International Financial Reporting Standards. In preparing these financial projections, the directors or otherwise:

presume that the company will continue in business for the foreseeable future; have made judgments and estimates that are reasonable and prudent; and have considered the economic and market uncertainties as well as the associated risks

and opportunities in making the financial projections. The overall capital requirements to carry out the proposed project have been effectively assessed and the applicant is in a position to meet these requirements.

Name and Surname

Address

Date / /

Signature

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PART 7 – DECLARATION BY APPLICANT

Has any Director/ Shareholder ever been personally declared bankrupt and subject to any formal insolvency procedure?


Has any Director/ Shareholder ever been the proprietor, Director, or Shareholder of a business that has been subject to a bankruptcy procedure or to an investigation or sanctioned under any financial regulatory framework? Yes SELECT YES OR NO

If you answered Yes to any one of the above statements, kindly attach a separate document providing details and clarifications.

7.1 Data ProtectionPersonal information provided in this form will be processed in accordance with the Data Protection Act, Cap 440 of the Laws of Malta and shall be treated in the strictest confidence. Information provided in this form will be processed by Malta Enterprise to assess the applicant’s eligibility, for the approval or otherwise of assistance under this scheme, for monitoring implementation of aid granted.

The undersigned consents Malta Enterprise to share information provided in this application with Government Entities or the European Commission where this is strictly necessary for the proper administration of this incentive or where legally required.

By signing this declaration the undersigned authorises Malta Enterprise Corporation to process the data contained in this form for the purpose stated. The undersigned also authorises the Corporation, as the administrator of the scheme, to disclose to the Commissioner of the Inland Revenue, Jobsplus, VAT Department or any other Governmental Entity any information, documents and records which the Corporation may have obtained in connection with this application. The undersigned also authorises the Inland Revenue Department and Malta Enterprise to exchange any information related to the utilisation of the tax credits. In line with Stat Aid Regulations, persons or undertakings cannot tap into other difference schemes regardless of whether that support would be financed from local, national or Union sources. It is important that the projects submitted under different schemes have no overlapping costs otherwise this is considered double funding and the funds will be reclaimed.

7.2 Cumulation of AidThe undersigned declares that aid approved under this incentive is in line with the terms and conditions set out in the Incentive Guidelines and in line with Cumulation Article 8 of the Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.

7.3 Double FundingThe undersigned confirms that there has not been any approval or has been granted any public funding, financing or fiscal benefit in respect to the cost items included in this request for aid and will not seek funding or fiscal benefits for these cost items through other National and/or European Union measures. Such measures may include:

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Schemes administered by Malta Enterprise, the Planning and Priorities’ Coordination Division (PPCD), the Measure and Support Division, the Tourism and Sustainable Development Unit (TSDU), the Employment & Training Corporation (ETC), the Malta Council for Science & Technology (MCST), the Regulator for Energy and Water Services (REWS) and government funded schemes operated by other entities (such as JAMIE financial instrument).

Schemes funded through ERDF, ESF, Cohesion Fund, TEN-T Budget, EAFRD, EFF, LIFE+; Horizon 2020 and other European Union programmes/instruments.

7.4 Outstanding Recovery Order The undersigned confirms that the applicant is not subject to an outstanding recovery order following a previous Commission decision declaring an aid illegal and incompatible with the internal market should be excluded from the scope of this Regulation.

7.5 Transparency Obligations For any individual aid awarded in excess of €500 000, the details of the beneficiary; the aid awarded; and the project details; shall be published as provided for in Article 9 of the COMMISSION REGULATION (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.

By submitting this application, I hereby acknowledge that the Corporation shall abide with any applicable transparency rules and may publish and make available to third parties information as required by such rules.

I, the undersigned do hereby declare that the information being submitted with regards to this application is correct.

I also confirm that the costs on which the aid is being claimed, are not recoverable in any way from other sources and that there are no arrears with respect to VAT, Income Tax, Social Security and/or rental payments to Government of Malta in relation to this business activity.

Name of Applicant (full legal name)

Authorised Signatory

Designation

Date / /

Signature

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