Niamh Smyth
Question:29. Deputy Niamh Smyth asked the Tánaiste and Minister for Enterprise, Trade and Employment if a proposal (details supplied) falls under Covid-19 loan scheme. [40081/22]
View answerTuesday, 26 July 2022
Questions (29)
Written answers
My Department introduced the Covid-19 Loan Scheme (the ‘CLS’) on 4th July 2022 to ensure that an appropriate option for access to finance remained in place for COVID-19 impacted SMEs.
The Scheme is aimed at helping vulnerable but viable businesses to continue to trade so that they can survive through these turbulent times, including maintaining employment levels, which is crucial for society and the economy. Access to the CLS is based on SMEs meeting a criterion that their business is being impacted by the Covid-19 pandemic, resulting in business turnover or profit being negatively impacted by a minimum of 15%.
Applications for eligibility are made to the Strategic Banking Corporation of Ireland (the ‘SBCI’) and the CLS is available for a wide range of sectors and activities. However, there are some exclusions and restrictions associated with the Scheme and this includes the financing of real estate activity.
The details provided in relation to this case refer to the eligibility of a loan application for the redevelopment of an existing commercial premises to residential apartments for renting purposes. Such activity is a real estate development activity and is thus beyond the scope and purpose for which the CLS was developed, thus such activity is not eligible for lending under the scheme.
The business owner could look to approach a lender for a non-government-backed loan. If unsuccessful in this application, the applicant could request to have it appealed within the bank's own internal systems. If this appeal is unsuccessful, the applicant may also consider a further appeal to the Credit Review Office (CRO). The CRO helps SMEs who have had an application for credit of up to €3 million declined or reduced by the main banks, and who feel that they have a viable business proposition. This is a strictly confidential process between the business, the Credit Review and the bank. Further information is available at www.creditreview.ie/