Dáil Éireann Debate, Wednesday - 2 December 2020
24. Deputy Aodhán Ó Ríordáin asked the Tánaiste and Minister for Enterprise, Trade and Employment the value of successful applicationsunder the Brexit loan scheme by month; the average loan value; the largest size of loans; if a list of successful applicants will be published; and if he will make a statement on the matter. [40576/20]
View answerThe Brexit Loan Scheme makes available working capital lending to eligible businesses that are or will be exposed to impacts arising from the UK’s withdrawal from the EU.
Loans under the scheme range from €25,000 to €1.5m for terms of up to three years and are offered at favourable terms compared to otherwise similar lending in the market. For example, there is no security required on loans of up to €500,000 and loans under the scheme are offered at a maximum interest rate of 4%, which represents a significant saving compared to other similar lending available in the market.
As of the most recent quarterly report, the average value of loans approved under the scheme is approximately €201,700, with a small number of loans at the maximum value permitted under the scheme of €1.5m. There are no plans to publish a list of successful applicants, as this would constitute commercially sensitive information.
Uptake of the Brexit Loan Scheme is reported on a quarterly basis, and so the table below sets out the total value of loans approved to the end of each quarter since its launch. While my Department is waiting for final data for Q3 2020, it is known that there has been little additional uptake of the Brexit Loan Scheme in Q3 of this year.
I am conscious that the delays to the Brexit process may have caused businesses to defer their Brexit preparations, and that the added disruption of the pandemic has meant that many businesses have had to focus their efforts through much of 2020 on successfully navigating an unforeseeable crisis.
However, Brexit will mean change for Irish businesses. I am encouraging businesses to carefully consider their exposure to Brexit-related impacts, to take the necessary steps to insulate themselves from those impacts, and to ensure they continue to trade after 1 January. Government has now approved an extension for this scheme so that it will remain available throughout 2021 to help SMEs and small midcaps with their liquidity needs arising from Brexit .
|
Reporting Period |
Value of Loans Approved/Sanctioned |
|
Q2 2018 |
€2.49m |
|
Q3 2018 |
€6.5m |
|
Q4 2018 |
€13.9m |
|
Q1 2019 |
€22m |
|
Q2 2019 |
€31.6m |
|
Q3 2019 |
€43.7m |
|
Q4 2019 |
€47.7m |
|
Q1 2020 |
€48.46m |
|
Q2 2020 |
€55.07m |
