Dáil Éireann Debate, Thursday - 18 October 2018
42. Deputy Niamh Smyth asked the Minister for Business, Enterprise and Innovation the number of applications for the Brexit loan scheme as announced in budget 2019 from counties Cavan and Monaghan; and if she will make a statement on the matter. [42557/18]
View answerThe Brexit Loan Scheme provides affordable working capital to eligible businesses with up to 499 employees that are or will be impacted by Brexit 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.
It has been designed to assist eligible Irish businesses in the short-term to deal with the challenges of Brexit, which include the pressures of increased market instability and currency volatility. The scheme is open to both State Agency clients and businesses that do not have any relationship with State Agencies. Sole traders may also apply.
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. This application process requires businesses to 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 the challenges posed by Brexit. Guidance is available on the SBCI website on completing a business plan. 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. Participating finance providers are the Bank of Ireland, Ulster Bank and Allied Irish Bank. Approval of loans under the Brexit Loan Scheme is subject to the finance providers’ own credit policies and procedures. As part of its efforts to promote the scheme, the SBCI has participated numerous Brexit-related events, including an event earlier this year in Cootehill, County Cavan and they will be attending the Government’s Getting Ireland Brexit Ready event in Monaghan this Friday.
The scheme was launched in March this year and at the beginning of October 2018 there have been nine applications each from Cavan and Monaghan. I have recently me with the SBCI and the three pillar banks participating in the Scheme and I will continue to work with them over the coming months on the promotion of the Scheme.
