Wednesday, 10 February 2021

Questions (18)

Niamh Smyth

Question:

18. Deputy Niamh Smyth asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of businesses in counties Cavan and Monaghan that have availed of the Brexit loan scheme. [6760/21]

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Written answers (Question to Enterprise)

The Brexit Loan Scheme makes working capital lending available to eligible businesses exposed to impacts arising from the UK’s withdrawal from the EU as they seek to innovate, change or adapt in response to these impacts.

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%.

The Brexit Loan Scheme features a two-stage application process, whereby businesses must first apply to the SBCI to confirm their eligibility under the scheme. Successful applicants are issued an eligibility reference number, which they can then use to make a loan application to a participating finance provider.

Granular details of the scheme’s uptake, including the breakdown of activity per county, are reported on a quarterly basis, and the following data is that as of the most recent quarterly report, dated 30 September 2020:

- As of the most recent report, there had been 23 eligibility codes approved under the Brexit Loan Scheme to businesses in county Cavan. Of those, 5 had progressed to draw loans under the scheme to a total value of €650,000.

- As of the most recent report, there had been 27 eligibility codes approved under the Brexit Loan Scheme to businesses in county Monaghan. Of those, 3 had progressed to draw loans under the scheme to a total value of €233,000.

A quarterly report covering the period to the end of Q4 2020 is expected in the coming weeks. While my Department is awaiting this final data, it is expected that there will be little change in these numbers as many businesses have diverted their attention to dealing with the immediate impacts of COVID-19.

As of 25 January 2021, there has been a total of 1,232 applications received under the Brexit Loan Scheme and 285 loans sanctioned to a total value of €57.64m.