Dáil Éireann Debate, Tuesday - 8 September 2020
75. Deputy Brendan Griffin asked the Tánaiste and Minister for Enterprise, Trade and Employment his views on a matter (details supplied) regarding loans for small businesses; and if he will make a statement on the matter. [22054/20]
View answerThere are a number of State-supported loan schemes in place to support small businesses.
If the business has been impacted by COVID-19, the Strategic Banking Corporation of Ireland (SBCI) COVID-19 Working Capital Scheme makes lending available to eligible businesses to enable those businesses to innovate, change or adapt in response to the current business environment. This could include innovations like the ones described in the supplied details. The Scheme is operated by the SBCI through participating finance providers, and loan amounts between €25,000 to €1.5m are available per eligible enterprise for loan terms ranging from one year to three years, with loans of up to €500,000 being available without collateral.
Alternatively, the COVID-19 Credit Guarantee Scheme facilitates up to €2 billion in lending to eligible businesses. Loans under the Scheme range from €10,000 to €1 million, for terms of up to five-and-a-half years. Financing will be offered through a range of products, including term loans, working capital loans and overdrafts. Loans of up to €250,000 under the Scheme are available unsecured (except where this is a requirement of the product feature, as in the case of asset finance, invoice discount facilities, etc.). The Scheme is operated by the SBCI through participating finance providers.
If the business is a micro-enterprise, they may be eligible for a loan from Microfinance Ireland and if the business has been COVID-19 impacted they may be eligible for a COVID-19 Business Loan of up to €25,000. These loans are available through Microfinance Ireland with zero repayments and zero interest for the first six months and the equivalent of an additional 6 months interest-free subject to certain terms and conditions. Loan terms are typically up to 3 years and there are no fees or charges.
The Future Growth Loan Scheme may also be appropriate and offers lending over a longer term than other loan schemes. This is another scheme from my Department and the Department of Agriculture, Food and the Marine, and is also operated by the SBCI. This scheme provides for loan terms of 7-10 years and is aimed at supporting businesses to invest strategically for their long-term sustainability and growth. Finance provided under the scheme is competitively priced and offered at favourable terms. For example, loans of up to €500,000 are available unsecured. Loans under the scheme range from €25,000 to €3 million.
For further details of the schemes listed above, please visit my Department’s website, the SBCI’s website and the MFI website.
