Dáil Éireann Debate, Tuesday - 28 November 2023
201. Deputy Paul Kehoe asked the Minister for Finance when he expects the Strategic Banking Corporation of Ireland loan scheme to be open for applications for farm development loans, not the energy-related loans; and if he will make a statement on the matter. [52363/23]
View answerI am pleased to inform the Deputy that the Strategic Banking Corporation of Ireland (SBCI) recently launched its €500 million Growth and Sustainability Loan Scheme (GSLS). This will facilitate strategic investment by SMEs, including farmers and fishers, in growth, resilience and climate action, to support their continued viability and sustainability, and increase their productivity and competitiveness. It aims to be an accessible source of low-cost finance for SMEs, including farmers, seeking to develop sustainable and resilient farm enterprises for the future.
Loans under this scheme are available from €25,000 to €3 million, with up to €500,000 available unsecured.
The scheme is underpinned by a counter-guarantee from the European Investment Fund with support from the Departments of Enterprise, Trade and Employment and Agriculture, Food and the Marine.
At least 30% of the scheme’s lending capacity is directed towards climate action and environmental sustainability, recognising that it is crucial that SMEs, including farmers, play their part in Ireland’s sustainable transition, and demonstrating the Government’s support for this goal. Loans under this strand will benefit from a further ‘green’ interest rate discount. Such loans include investment in green/sustainable measures, any investment by SMEs classified as a Green/Sustainable Enterprise, and any investment by farmers classified as a holder of a Green Eco Label.
The remaining 70% of the lending volume is targeted for investment in business growth and resilience. Such loans may go towards, but are not limited to:
• Investments in tangible or intangible assets
• Machinery or equipment
• Research and development
• Business expansion
• Premises improvement
• Process innovation
Bank of Ireland and AIB are currently accepting applications under the GSLS – with Bank of Ireland focusing on the sustainability strand and AIB on both growth and sustainability. More on-lenders are expected to join this scheme in the near future.
