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Covid-19 Pandemic Supports

Dáil Éireann Debate, Wednesday - 24 March 2021

Wednesday, 24 March 2021

Questions (204)

Holly Cairns

Question:

204. Deputy Holly Cairns asked the Tánaiste and Minister for Enterprise, Trade and Employment his views on reactivating the future growth loan scheme long-term loan; and if he will make a statement on the matter. [15936/21]

View answer

Written answers

The Future Growth Loan Scheme makes lending available to SMEs and small mid-caps (up to 499 employees) seeking financing for long-term strategic investment, including in response to the impacts of Brexit and COVID-19.

The scheme was launched in 2019 and initially provided for up to €300m in long-term lending, however in July of 2020 it was expanded by €500m to make a total of €800m available through participating financial providers. As of 22 March 2021, 3,246 loans have been sanctioned through the Future Growth Loan Scheme to the value of €675.61 million.

Funding under the scheme is made available through commercial finance providers: AIB, Bank of Ireland, Ulster Bank, Permanent TSB, KBC and Close Brothers. The scheme has seen rapid uptake and as such the majority of the participating finance providers are currently closed to new applications as they process a “pipeline” of existing applicants. That pipeline is expected to amount to further tens of millions of lending through those participating providers.

At present, Close Brothers and KBC remain open to new applications. 

As noted above, this scheme makes funding available to businesses seeking to make long-term, strategic investments. That the uptake of the scheme has remained strong throughout the pandemic is a positive indication that businesses are looking beyond the difficulties of the last year. 

I would also encourage businesses seeking funding for investment to consider their options under the COVID-19 Credit Guarantee Scheme, which makes lending available at favourable terms to COVID-19-impacted businesses for terms up to five-and-a-half years. Loans under that scheme range from €10,000 to €1m and loans of up to €250,000 are available unsecured.

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