Thursday, 3 October 2019

Questions (118)

Michael McGrath

Question:

118. Deputy Michael McGrath asked the Minister for Business, Enterprise and Innovation the number of businesses that have applied for working capital under the Brexit loan scheme; the number of such businesses that have been sanctioned financing to date; and the total value. [40343/19]

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Written answers (Question to Business)

The Brexit Loan Scheme provides affordable working capital to eligible businesses with up to 499 employees that are or will be Brexit impacted and which meet the scheme criteria.  The €23 million exchequer funding announced in the 2018 Budget has been leveraged to provide a fund of up to €300 million over the lifetime of the scheme.

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. The SBCI assesses 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 Allied Irish Bank. Approval of loans is subject to the finance providers' own credit policies and procedures. 

As at close of business 27 September 2019, 816 businesses have applied for eligibility under the Brexit Loan Scheme. 738 of the applications received were approved and received eligibility codes and 194 businesses have been sanctioned financing to date with a total value of €43.52 million. It should be noted that 153 of total applications received relate to repeat / duplicate applications. The high level of repeat applications would suggest that businesses see a value in having approved eligibility for the scheme but are not proceeding to bank sanction  until they actually need the working capital support.