The SBCI has delivered two major risk-sharing schemes, the Agriculture Cashflow Support Loan Scheme and the Brexit Loan Scheme, in 2017 and 2018.
The Agriculture Cashflow Support Loan Scheme has now concluded and a total of approximately €145m of loans were drawn down by over 4,200 SMEs under that scheme. The loans were made available through AIB, Bank of Ireland and Ulster Bank, and SMEs applied directly to those banks to obtain approval for a loan through the banks’ usual credit processes. The borrowers and loans were subject to eligibility criteria determined by the SBCI in accordance with its obligations to the Minister for Agriculture, Food and the Marine, to the European Investment Fund and in compliance with State Aid regulations.
The Brexit Loan Scheme is currently available and can facilitate up to €300m of lending to SMEs and Small MidCap enterprises. For this scheme, borrowers may confirm their eligibility directly with the SBCI (details are available on the SBCI’s website at www.sbci.gov.ie) and then proceed to apply for a loan through the financial intermediaries selected by the SBCI following an Open Call process, in this case AIB, Bank of Ireland and Ulster Bank. The borrowers and loans are subject to eligibility criteria determined by the SBCI in accordance with its obligations to the Minister for Agriculture, Food and the Marine, the Minister for Business, Enterprise and Innovation, to the European Investment Fund and in compliance with State Aid regulations.
The SBCI also operates the Credit Guarantee Scheme on behalf of the Minister for Business, Enterprise and Innovation, and loans of €28.7m to 190 SMEs have been supported under that scheme in the last two years.
If the outcome of a banks internal appeals process is unsatisfactory to the customer they have the option of appealing to the Credit Review Office. The Credit Review Office is a government initiative that helps SMEs who have had an application for credit of up to €3 million declined or reduced by the main banks, and who feel that they have a viable business proposition. This is a strictly confidential process between the business, the Credit Review Office and the bank. The CRO provides a confidential, independent review process and will engage with the lender that has refused or reduced credit, the Office overturns more than 50% of lenders decisions in the appeals it receives.
