The Scheme for the Partial Subsidisation of Bank-Approved Loans for Local Band Clubs forms part of Arts Council Malta’s funding schemes which aim to invest in Local Band Clubs. The latter play a pivotal role in Malta in preserving cultural traditions, fostering community identity and nurturing young talent in music and the performing arts. Voluntary organisations, however, often face significant financial challenges in sustaining their operations, investing in infrastructure and modernising their facilities.

Access to financing through the banking sector is possible but is often limited by the cost of borrowing. Despite the need for upgrades, renovations and cultural initiatives, voluntary organisations are discouraged by the high interest rates that are attached to bank loans. The scheme aims to strengthen the sector by reducing the financial strain on band clubs undertaking bank-approved loans.

This scheme will partially subsidise the interest burden on such loans, thereby facilitating investment, ensuring financial sustainability, and enhancing the cultural contributions of band clubs.

The aid is targeted exclusively at Local Band Clubs, which are community-based, cultural, voluntary organisations that generate public value. Support will strengthen their long-term financial sustainability and safeguard their ability to provide cultural services to the community.

The primary objective of this scheme is to facilitate access to affordable financing for local band clubs by subsidising part of the interest costs on bank-approved loans. The subsidy will be based on a capping of a bank loan amounting to a maximum of €500,000 (five hundred thousand euros). For example, a loan for the amount of €600,000 will be eligible for the scope of this scheme, however, support will be calculated on the capping of the first €500,000.

The scheme is designed as a proportionate and transparent intervention, ensuring that public support directly reduces financing burdens without distorting market competition. By lowering the effective cost of borrowing, the measure will encourage investment in infrastructure, modernisation and cultural activities that would otherwise be financially unattainable.

Band Clubs will first be responsible for negotiating loan agreements directly with approved banking institutions, ensuring that each club is able to secure financing tailored to its needs while adhering to standard banking due diligence procedures.

Once a loan has been issued, Arts Council Malta, acting on behalf of the Government, will intervene solely for the purpose of subsidising 50% of the interest charges associated with the loan.