Dáil Éireann Debate, Tuesday - 26 September 2023
220. Deputy Darren O'Rourke asked the Minister for Enterprise, Trade and Employment how the sustainability loan scheme is being implemented to fund biodiversity initiatives; the number of successful applicants sought to address biodiversity, in tabular form per year since the schemes inception and in Q1, Q2 and Q3 2023. [41004/23]
View answerThe Growth and Sustainability Loan Scheme is a long-term loan guarantee scheme jointly developed by my Department and the Department of Agriculture, Food and the Marine. The scheme is underpinned by resources from the European Investment Bank Group and delivered by the Strategic Banking Corporation of Ireland.
The €500 million Growth and Sustainability Loan provides longer-term lending to SMEs, including farmers and fishers and small mid-caps. Loans of between €25,000 and €3 million, with terms of up to 10 years and attractive terms and conditions, are available through the scheme to eligible SMEs through participating finance providers, with loans of up to €500,000 available unsecured.
The scheme will target a minimum of 30% of the lending volume towards environmental sustainability purposes with the aim of encouraging SMEs to take positive actions in support of the climate change agenda. Up to 70% of lending will be for strategic investments with a view to increasing productivity and competitiveness and thus underpinning future business sustainability and growth.
Loans for climate action and environmental sustainability purposes will also benefit from an additional interest rate discount.
The terms of the scheme allow for biodiversity initiatives including the provision of loans which contribute to sustainable circular bioeconomy and fostering sustainable development and efficient management of natural resources such as water, soil and air, including by reducing chemical dependency. In addition, the scheme can provide loans which contribute to halting and reversing biodiversity loss, enhancing ecosystem services and preserving habitats and landscapes. Further information on eligible activities can be found at the link below:
sbci.gov.ie/uploads/general/GSLS-Climate-Action-and-Environmental-Sustainability-Use-Case-Document-Measures-FINAL-BORROWER1.pdf.
As the scheme just launched on 19 September 2023 with the first on lender Bank of Ireland, the data requested by the Deputy are not available.
A number of other lenders, including non-bank lenders, are expected to take part in the scheme in the coming months.
The Growth and Sustainability Loan Scheme will operate until 30 June 2026 or until the scheme has been fully subscribed (whichever is earlier).
