The Strategic Banking Corporation of Ireland (SBCI) commenced lending in March 2015 through both Bank of Ireland and Allied Irish Bank (AIB). To the end of June 2015 in excess of €44.6 million euro had been lent in lower cost loans to over 1600 SMEs across Ireland.
Both AIB and Bank of Ireland are obliged to report to the SBCI the interest rate applied on each loan they advance using SBCI funds, confirming that the financial advantage of the SBCI's lower interest rate has been passed on in full to the SME. It is important that this advantage is passed on to SMEs and it is a requirement of meeting State Aid de Minimis rules. Therefore. it is a condition of loan agreements between the SBCI and both AIB and Bank of Ireland that and any failure to do so would amount to a breach of the banks' contractual obligations. The SBCI continuously and rigorously monitors the allocation of its funding by both banks.
The SBCI continues to work actively with the AIB and Bank of Ireland to promote and raise awareness of the SBCI's funding and will continue to publish its results on a semi-annual basis.
