Dáil Éireann Debate, Wednesday - 18 April 2018
33. Deputy Thomas P. Broughan asked the Minister for Business, Enterprise and Innovation the uptake of the Brexit loan scheme for businesses in the first two weeks since its launch on 28 March 2018; and if she will make a statement on the matter. [16173/18]
Amharc ar fhreagraThe Brexit Loan Scheme provides affordable working capital to eligible businesses with up to 499 employees that are or will be Brexit impacted and meet the scheme criteria. The €23 million exchequer funding (€14 million from my Department and €9 million from the Department of Agriculture, Food and the Marine) has been leveraged to provide a fund of up to €300 million. Participating finance providers are the Bank of Ireland and Ulster Bank with Allied Irish Bank following in June.
The scheme features a two-stage application process. First, businesses must apply to the Strategic Banking Corporation of Ireland (SBCI) to confirm their eligibility for the scheme. This application process requires businesses to use guidelines provided on the SBCI website to determine if they are eligible, and if so, to complete the eligibility form. As part of the process, businesses must submit a business plan, demonstrating the means by which they intend to innovate, change or adapt to meet the challenges posed by Brexit. The SBCI assess the applications and successful applicants receive an eligibility reference number.
Successful applicants can then apply for a loan under the scheme with one of the participating finance providers.
The Brexit Loan Scheme is designed to assist Irish SMEs in the short-term to deal with the challenges of Brexit, which include the pressures of increased market instability and currency volatility. The scheme is available to businesses that are demonstrably exposed to negative impacts (or potential impacts) arising as a result of Brexit. Businesses must fully meet the eligibility requirements, which include being viable, having a business development strategy and demonstrable exposure to Brexit. The scheme is open to both State Agency clients and businesses that do not have any relationship with State Agencies. Sole traders may also apply.
The Scheme was launched on 28 March, and accordingly it is too early for businesses to have completed both application processes. Metrics detailing the uptake of the scheme will be available at the end of Quarter 2, 2018.
