Dáil Éireann Debate, Tuesday - 24 July 2018
1237. Deputy Maurice Quinlivan asked the Minister for Business, Enterprise and Innovation the number of businesses that have availed of the Brexit loan scheme to date; and if she will make a statement on the matter. [33596/18]
Amharc ar fhreagra1296. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the number of firms that have applied for working capital under the Brexit loan scheme. [35129/18]
Amharc ar fhreagraI propose to take Questions Nos. 1237 and 1296 together.
The 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 announced in the 2018 Budget (€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.
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. Businesses can 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 their Brexit challenges. 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 using their eligibility reference number. Participating finance providers are the Bank of Ireland, Ulster Bank and Allied Irish Bank. Approval of loans is subject to the finance providers' own credit policies and procedures.
The maximum interest rate under the scheme is 4%. This represents a significant saving compared with the prevailing rates that are otherwise being offered for similar loans on the market.
From the launch of the scheme on 28 March 2018 to the end of June 2018, the SBCI have received 151 applications. Of these, 132 have been deemed eligible and can proceed to one of the participating finance providers for a loan under the scheme. 10 SMEs have progressed to sanction at finance provider level to a total value of €2.49 million.
The Department will receive a report each quarter from the SBCI on the uptake of the scheme. The next report will be due in early October 2018.
