Dáil Éireann Debate, Thursday - 10 February 2022
61. Deputy Jennifer Carroll MacNeill asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of companies that have availed of the Covid-19 credit guarantee scheme; his views on whether it is necessary to make adjustments; and if he will make a statement on the matter. [6874/22]
View answerThe COVID-19 Credit Guarantee Scheme has been operating since September 2020 and during that time up to the end of 2021, a total of €617 million in loans has been drawn or approved by over 8,800 businesses, maintaining over 63,000 jobs. Businesses which have been most impacted by the effects of COVID-19 are drawing the most loans; the wholesale and retail sector, the accommodation and food services sector, the construction sector and the primary agriculture and fisheries sector account for 58% of all loans drawn under the scheme.
Government is very aware that when it comes to lending, availability of loans and the cost of the loans is vitally important. Government insisted that given the 80% guarantee being provided by the State that lenders reciprocate with lower interest rates. Data in respect of loans up to the end of 2021 shows that 93% of loans are being provided at interest rates which are less than 3%, at rates that are below the market rates for similar type loans. Loans of up to €250,000 are also available without the need for security.
In 2021 a number of new on-lenders joined the scheme including non-bank lenders and for the first time 19 credit unions joined a state-backed loan scheme providing a range of loan products across the regions.
The Scheme has been developed in accordance with the European Commission’s State Aid Temporary Framework and has been extended three times since September 2020. The last extension was in December 2021 and makes the scheme available until 30 June 2022. Any further extension of the scheme beyond that point is dependent on an extension of the Temporary Framework. I would therefore encourage businesses to avail of these low-cost loans in the remaining time of the scheme, which can be used for both working capital and investment purposes.
