MDB and Xjenza Malta launch initiative to help start-ups bring innovations to market

Innovative Maltese start-ups looking to commercialise new ideas can now access dedicated loan support through a joint initiative between the Malta Development Bank and Xjenza Malta.

The Go-To-Market Loan Assistance Programme was presented by the MDB during the launch of Xjenza Malta’s updated FUSION Go-To-Market initiative, which is designed to help local start-ups and research-driven projects move from prototype stage towards commercial readiness and market validation.

The scheme specifically targets one of the biggest challenges faced by innovative businesses: access to finance.

Through the programme, the MDB will provide financial support to start-ups already participating in Xjenza Malta initiatives that are seeking to commercialise their innovations. The scheme operates in collaboration with local commercial banks and is aimed at enterprises whose ideas may have strong commercial potential but which do not necessarily meet traditional lending requirements.

Under the programme, the MDB provides an 80 per cent guarantee on loans issued by participating banks, while the banks retain the remaining 20 per cent of the risk. The structure is intended to encourage lending to businesses whose main assets may consist of intellectual property, research or innovation, rather than physical collateral.

Alongside the loan guarantee, Xjenza Malta will also offer grant support through an interest rate subsidy, assistance with upfront bank contributions and support aimed at reducing collateral requirements.

MDB Chief Executive Officer Alison Micallef said the initiative addresses financing barriers that frequently prevent innovative ideas from reaching the market.

“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,” she said.

Meanwhile, MDB Chairperson Leo Brincat said Malta’s long-term competitiveness would increasingly depend on its ability to convert ideas into sustainable businesses.

“Development finance has an important role to play here, and MDB is helping build a stronger innovation ecosystem in Malta,” he said.

Eligibility for the scheme is linked to participation in Xjenza Malta programmes.