Storm-hit businesses can now apply under amended Malta Enterprise scheme

Malta Enterprise has amended its Business Development Scheme to help enterprises that sustained significant damage during the severe storm that struck Malta on 20th January, introducing targeted support for refurbishment and restoration works.

Under the revised scheme, businesses that incurred more than €7,000 in storm-related damage may apply for assistance covering 60 per cent of eligible costs, capped at €20,000 per case. The works must be certified by a warranted architect or engineer, and applicants are required to submit photographic evidence alongside cost estimates.

Firms with damages of up to €5,000 are being directed towards support measures administered by Transport Malta.

The announcement follows days of public debate over whether establishments with planning irregularities should qualify for state aid after Storm Harry caused widespread destruction along the east and south coasts, particularly in Marsascala.

Prime Minister Robert Abela had initially indicated that even properties with illegal structures would be able to benefit from the €1 million compensation fund announced for private property damage not covered by insurance. However, this position drew criticism from business bodies, resident groups and political figures who argued that public funds should not be used to subsidise illegalities.

In clarifications issued later in the week, the Prime Minister said that assistance would be limited to parts of premises covered by valid development permits, unless the irregularities are regularised with the Planning Authority within a year.

The amended Malta Enterprise scheme reflects this position. Businesses that are not fully compliant with permitting requirements may still apply for assistance but will be given a one-year window to regularise their operations. Failure to do so will limit compensation strictly to the permitted portions of the property.

Malta Enterprise stated that businesses must also ensure that their operations are compliant with all necessary permits when submitting their application.

Affected enterprises have until 13th February 2026 to register their need for assistance by contacting Business First via email. Business First will support applicants throughout the process.

The issue of compensation for illegal structures gained national attention after images emerged of heavily damaged seaside establishments, including in areas where the placement of tables and chairs without permits has long been a point of contention between operators, residents and regulators.

The Malta Chamber of Commerce, Enterprise and Industry and former Prime Minister Alfred Sant were among those who publicly argued that compensation should not extend to illegal developments or street furniture, stressing that taxpayer funds should be distributed in a fair and justified manner.

Government has maintained that the revised approach strikes a balance – offering relief to struggling businesses while ensuring that aid is not used to reward planning breaches.