Dáil Éireann Debate, Tuesday - 17 October 2017
149. Deputy Michael McGrath asked the Minister for Finance the details of the Brexit fund announced on budget day; the type of loans it will provide; the way in which companies qualify for assistance; the rate which will be charged on the funding provided; the organisation that will undertake the underwriting of loans; and if he will make a statement on the matter. [44058/17]
Amharc ar fhreagra152. Deputy Michael McGrath asked the Minister for Finance when he expects the new Brexit fund to be up and running; when he expects the fund to commence lending; if this fund has been given State aid approval by the European Commission; the way in which he expects the Brexit fund to be compliant with State aid rules; and if he will make a statement on the matter. [44061/17]
Amharc ar fhreagraI propose to take Questions Nos. 149 and 152 together.
As the Deputy is aware, the impact of Brexit is currently still unfolding. However, what is clear is that Brexit is likely to affect Ireland’s trade patterns and SMEs. To meet the working capital needs of Irish SMEs and to assist them with adapting and innovating in response to the challenges, and opportunities, posed by Brexit I announced a €300 million Brexit Loan Guarantee in my speech for Budget 2018. This Scheme forms part of the wider Government Brexit Strategy and was developed by the Department of Business, Enterprise and Innovation and the Department of Agriculture, Food and the Marine in conjunction with the Strategic Banking Corporation of Ireland and Enterprise Ireland.
It is intended that the Scheme will operate under the de minimis State aid rules and be supported by both State and European guarantees. Loans at competitive interest rates will be available to all viable but vulnerable Irish SMEs and small MidCaps, businesses with less than 499 employees, who are exposed to the impact of Brexit. As part of the application process, businesses will be required to produce a business plan that demonstrates how they intend to adjust to the challenges they face because of Brexit. All applications will be assessed for eligibility by the SBCI and then subject to the normal lending assessment criteria of the commercial finance providers involved in the Scheme. Due to State aid rules, the Scheme will not be available to primary producers in the agriculture sector or to the fishing sector.
I expect the Scheme will launched in March of next year. Further details of the Scheme will be provided shortly by my colleagues, the Tánaiste and Minister for Business, Enterprise and Innovation and the Minister for Agriculture, Food and the Marine.
