Dáil Éireann Debate, Tuesday - 27 November 2018
324. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the number of firms that have applied for working capital under the Brexit loan scheme; the number of firms that have been sanctioned financing to date; and the value of same. [48875/18]
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 how to complete 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.
The scheme was launched in March this year and, as of 23 November, there have been 307 applications received, of which 270 have been approved and 54 loans progressed to sanction at finance provider level to a value of €12.51 million. These figures were issued as an interim update, more detailed information is available on a quarterly basis.
