Dáil Éireann Debate, Tuesday - 7 July 2020
45. Deputy Pearse Doherty asked the Tánaiste and Minister for Business, Enterprise and Innovation the number of applications for loans under the Covid-19 credit guarantee scheme that have been rejected by lenders since 23 March 2020. [14639/20]
View answerThe new €2 billion COVID-19 Credit Guarantee Scheme forms a major component of the Government’s strategy to aid SMEs in these difficult times by providing critical support to ensure businesses are facilitated in having access to credit facilities to assist a return to a more regular trading environment.
It will provide an 80% guarantee on lending to SMEs until the end of this year, for terms between 3 months and 6 years. The guarantee can be used for a wide range of lending products between €10,000 and €1 million that have a maximum term of 6 years or less. The new Scheme is expected to include overdrafts and short-term re-financing facilities, the terms of which are currently under discussion with the financial providers.
The implementation of this Scheme requires primary legislation, the drafting of which has been approved by Government and work on drafting is ongoing.
My officials are also currently engaged with the European Commission in seeking approval for the Covid-19 Credit Guarantee Scheme and ensuring the Scheme's adherence to the rules set out in their Temporary Framework.
