The Change to Grow Scheme by Malta Enterprise “… supports businesses kick-start transformation processes that lead to growth, sustainability, and optimised performance. The scope of this incentive is to support SMEs realign their business activity, restructure their employees, product and/or service portfolio, optimise the use of technology and embrace green technology and practices.” The scheme works by enabling SMEs who have a vision to develop to seek support from external advisors. This support can be used to assist them in carrying out significant changes that will enable them to accelerate development, address sustainability and improve market access.
Change to Grow Eligibility Criteria
Self-employed, micro enterprises and SMEs;
- This scheme falls under the de minimis regulations;
- Firms who are defaulting on VAT, Tax or Social Security payments are not eligible;
Public entities are excluded from the scheme;
The business cannot be an “Undertaking in Difficulty“.
- The Change to Grow initiative will support an Advisory Stage and a subsequent Implementation Phase to any recommendations pursuant from the advisory;
- Eligible undertakings may benefit from a maximum grant of ten thousand Euro (€10,000) disbursed as a reimbursement of seventy-five percent (75%) of eligible costs incurred;
- An undertaking can claim up to €200,000 over a 3 year rolling period (De Minimis reguations).
Advisory Stage Assistance
- During the Advisory Stage, support is limited to a maximum of five thousand Euro (€5,000) and up to one hundred and twenty euro per hour (€120/hr) excluding VAT;
- Only costs related to a Qualifying Advisory Service as detailed below can be part-financed at this stage of the approved project.
- Beneficiaries are to complete the Advisory Stage within six (6) months of the Corporation’s approval;
- The Corporation shall consider supporting advisory services in areas that address a strategic shift in the operation of an enterprise, such as:
- Digitisation of business processes
- Performance optimisation
- Process improvements
- Environmental performance and sustainability
- Implementation of quality systems
- Product process certifications
- Customer handling procedures
- Pricing analysis
- Market positioning
- Human resource optimisation
- Other actions as may be justified by the applicant
- The advisory service provider must agree to an hourly charge-out rate. The advisory service provider will be required to maintain time sheets depicting the work done in favour of the Beneficiary and to compile a report highlighting the main recommendations and eligible costs that the Corporation may consider supporting during the Implementation phase;
- The advisor or advisory team leader must meet specific criteria set by Malta Enterprise. To simplify the on boarding of advisors, The Malta Chamber of Commerce, Enterprise, and Industry, established a directory of eligible advisors, which is available here. CMG Consulta are on this list.
Implementation Stage Assistance
- The outcome of the advisory and the recommendations for implementing the required changes communicated to the Corporation in the Advisory Report can trigger the request for additional support to kick-start the change process;
- If undertaken, the Implementation Stage, must follow the advisory stage and be applied for when claiming for the advisory cost reimbursement;
- This Stage shall give access to a further five thousand Euro (€5,000) of support;
- During this phase, the Beneficiary can receive part financing of eligible costs incurred for the implementation of the recommendations highlighted by the advisory service;
- The Advisory Report Form can identify up to five (5) investment costs which should be carried out in preparation or for the implementation of the change process;
- If the investment costs are approved and deemed eligible by the Corporation, a Letter of Approval will be issued to the Beneficiary approving support for the carrying out of the Implementation Phase;
- The Corporation shall consider eligible costs having a value of at least five hundred Euro (€ 500) that are
identified in the Advisory Report and that cover the following areas:
- investment costs in tangible assets;
- procurement of off-the-shelf software solution (including new licenses);
- new subscriptions to Software As A Service (SaaS) solutions, covering a period of up to twelve (12) months;
- one-off services or the initial engagements covering a period of three months of service
- providers addressing new solutions to which the Beneficiary had no prior access.
- In addition, out of five thousand Euro (€5,000) of support available for the Implementation Phase, up to five hundred Euro (€500) of this funding can be utilised to part-finance additional advisory support required during the Implementation Phase.
- Only costs incurred after the Corporation evaluates the Advisory Report and issues a further Letter of Approval specifying the terms and conditions of any additional funding, shall be eligible.
Support may not be provided in respect to:
- items or services procured from parties related to the beneficiary;
- items or services (excluding advisory approved under this scheme) procured from the advisory service provider or parties related to the provider;
- costs related to ongoing continuous or periodic activities;
- costs related to export activities;
- costs related to the undertaking’s usual operating costs, such as routine tax consultancy
services, regular legal services, or advertising.
Summary of Rules
- The scheme was launched in 2021 and closes in 31st October 2022.
- Download the application form, and fill it in in consultation with the Advisor;
- The selected Advisory Service provider will have to provide you with a quotation on the Quotations Template provided by the Corporation. The quotation shall clearly define the advisory services agreed to, the hourly rate and the time allocated for the task.
The applicant is to apply online on the Malta Enterprise Client Portal;
The application consists of an application form where the applicant will need to detail a business justification for the project as well as information on how the project will be run and measured;
Malta Enterprise is to review the application and issue a letter of approval specifying the terms and conditions of the award;
Once the letter of approval is received the work can start to be carried out and needs to be completed within 6 months;
- In submitting a claim, the applicant needs to submit fiscal documentation, proof of payment, timesheets, and an Advisory Report on a template provided by the Corporation. The summary Advisory Report shall highlight the main findings of the advisory, the recommendations and a list of investments that are needed to facilitate the implementation of the recommendations.
CMG Consulta are advisors who carry out business consultancy with SMEs and family businesses. We can assist you with reviewing your business model, internationalising, reviewing your product portfolio, improving operational performance, re-engineering business processes and transforming your business. Please get in touch to explore actual opportunities.
This document was prepared based on the Malta Enterprise Incentive Guidelines for the Change to Grow 2021 Scheme as accessed on the Malta Enterprise Website on the date of publishing.