Utilising EU Funds for your SME

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In today’s competitive business environment, small and medium-sized enterprises (SMEs) face increasing market pressure to continuously innovate and modernise in order to remain efficient, maintain the relevance of their products and services, and compete effectively with other market providers. In order to reach this goal the innovation and modernisation process would typically include the updating of computer and IT equipment, machinery, training, remodelling and updating of software, in addition to other investments. 

The cost to carry out such necessary updates may be prohibitive without further access to funding. The latter is often one of the biggest barriers to growth, however it is also one of the most powerful boosts to growth when obtained and used strategically. 

Here at SG Malta, we aim to link companies with the numerous types of funds available. This article focuses on the main EU funds available for SMEs. The current funding run is open up until the end of June 2026. 

 

SME Enhance

This scheme is designed to support Maltese Micro, Small, and Medium-Sized Enterprises (SMEs) and Start-ups through non-repayable grants that co-finance investments aimed at improving productivity, competitiveness, and sustainability. 

The eligible expenditures include:

  • Equipment and Machinery (which consist of):
  • Furniture
  • Fixtures and fittings (excluding the following)
    • Network cabling, wall paintings, soft furnishings, plants and shrubs and solar panels
  • Equipment, excluding military equipment
  • IT equipment (tangible and intangible)
  • Vehicles both for land and water (subject to specific criteria)
  •  Ancillary items
    • Up to 10% of the cost of the project up to a maximum of €10,000
  • Lease of private operational premises 
    • Maximum for duration of 2 years (capped at 10% of Equipment and Machinery cost).

The minimum grant amount of the total application stands at €10,000 whilst the maximum stands at €128,400 which includes an additional 7% flat rate for financing indirect costs. Grants may provide financing up to 50% of the investment amount if the investment is to be carried out in Malta and up to 60% of the investment amount if the investment is to be held in Gozo and the investment is to be carried out under the de minimis rules. 

If the investment does not qualify under the de minimis rules, the aid intensity ratios are reduced. For micro and small enterprises with investments in Gozo, areas of Malta included in the regional aid map or areas of Malta not included in the regional aid map would benefit from aid intensity ratios of 35%, 30% and 20% respectively. For medium-sized enterprises the percentages stand at 25%, 20% and 10% respectively.

 

Business Reports for SMEs

This scheme is focused on providing affordable external strategic consultancy to small and medium-sized enterprises. This is done by improving access to detailed reports that help to strengthen decision making and planning for the future for enterprises. This scheme allows SMEs to access expert consultancy knowledge that is usually exclusive to bigger firms. This allows SMEs to accurately decipher their strengths and weaknesses allowing them to chart a course for strong and persistent growth.

The scheme provides funding for business plans and process & systems reviews prepared by qualified consultants. It is available to micro, small and medium-sized entities irrespective of sector, provided the service is delivered by an approved external provider (SG Malta is licenced as an approved external provider). The grant covers up to 80% of eligible consultancy costs, capped at a fixed lump-sum amount of €4000.

 

Digitalise your SME

The Digitalise Your SME scheme is tailored to help SMEs upgrade their digital capabilities, improve operational efficiency and enhance competitiveness through technological investment. Funding is provided to part-finance eligible digital solutions such as:

  • Commercial Off-The-Shelf (COTS) and Custom Software 
  • Hardware (such as Laptops, Docking Station, Port Replicator, Monitors, Tablets)
  • Analytical Tools (including necessary hardware and software) 
  • Cyber Security systems 
  • Cloud computing 
  • Internet of Things (IOT)
  • Artificial intelligence (AI)
  • Big Data analysis
  • Cyber Security
  • Quantum Technology
  • Routers, switches and WIFI related equipment 
  • Other hardware, software or Digital Solutions (subject to approval) 
  • Installation including any training costs on the use of the specific item acquired under points above and included in the purchase price of the item in question, and thus from the same provider

The scheme co-finances up to 50% of eligible costs for investments in Malta (60% in Gozo under certain conditions). Grants are up to €120,000, plus a 7 % indirect cost allowance. All eligible expenditure must be directly related to digital modernisation and productivity enhancement.