Billy Kelleher
Question:319. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the latest figures regarding the Brexit SME loan scheme launched in 2018 for each item (details supplied). [32132/18]
View answerThursday, 12 July 2018
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The Brexit Loan Scheme provides affordable working capital to eligible businesses with up to 499 employees that are or will be Brexit impacted and meet the scheme criteria. The €23 million exchequer funding (€14 million from my Department and €9 million from the Department of Agriculture, Food and the Marine) has been leveraged to provide a fund of up to €300 million.
The scheme features a two-stage application process. First, businesses must apply to the Strategic Banking Corporation of Ireland (SBCI) to confirm their eligibility for the scheme. Businesses can use guidelines provided on the SBCI website to determine if they are eligible, and if so, to complete the eligibility form. As part of the process, businesses must submit a business plan, demonstrating the means by which they intend to innovate, change or adapt to meet their Brexit challenges. The SBCI assess the applications and successful applicants receive an eligibility reference number.
Successful applicants can then apply for a loan under the scheme with one of the participating finance providers using their eligibility reference number. Participating finance providers are the Bank of Ireland, Ulster Bank and (from the end of June) Allied Irish Bank. Approval of loans are subject to the finance providers own credit policies and procedures.
The maximum interest rate under the scheme is 4%. This represents a significant saving compared with the prevailing rates that are otherwise being offered for similar loans on the market.
The scheme was launched on 28 March this year. As at the end of June, there had been 151 applications to confirm eligibility for the scheme, of which 132 had been approved, 13 applications were still being assessed, and 6 applicants had been deemed not eligible. A more detailed breakdown will be published on my Department's website in the coming weeks.
10 SMEs have progressed to sanction at finance provider level to a total value of €2.49 million.