Thursday, 3 October 2019

Questions (119)

Michael McGrath


119. Deputy Michael McGrath asked the Minister for Business, Enterprise and Innovation the number of businesses that have applied to the future growth loan scheme; the number of businesses that have been sanctioned financing to date; and the total value. [40344/19]

View answer

Written answers (Question to Business)

The Future Growth Loan Scheme makes up to €300 million worth of loans available with a term of eight to ten years and is open to eligible Irish businesses, including those in the primary agriculture and seafood sectors, to support strategic long-term investment. Finance provided under the scheme is competitively priced and has favourable terms, for example, no security is required for loans up to €500,000.

The scheme has been developed by my Department and the Department of Agriculture, Food and the Marine in partnership with the Department of Finance, the Strategic Banking Corporation of Ireland (SBCI) and the European Investment Fund. 

Loans to businesses under the scheme can be used to fund investments in equipment, machinery, buildings and associated overhead costs for organisational and/or process innovation.  Loans to primary agriculture under the scheme can be used to fund investment in tangible and intangible assets on agricultural holdings linked to primary agricultural production.

The Future Growth Loan Scheme features a two-stage application process. Applications for eligibility under the scheme is made through the SBCI website. The SBCI assesses the applications and successful applicants are issued an eligibility reference number.

Eligible businesses may then apply for a loan under the scheme with one of the participating finance providers using the eligibility reference number. Approval of loans under this scheme is subject to the finance providers’ own credit policies and procedures.

As at 27 September 2019, there have been 1,353 applications for eligibility under the scheme, of which 1,283 have been approved to date by SBCI. 270 of those applications have progressed to sanction at bank value, to a total value of €43.8 million.