Dáil Éireann Debate, Wednesday - 13 May 2020
443. Deputy James Lawless asked the Minister for Business, Enterprise and Innovation her plans to extend the Strategic Banking Corporation of Ireland loan scheme in order that applicants can access the scheme. [4405/20]
Amharc ar fhreagraMy Department supports a number of different loan schemes operated by the Strategic Banking Corporation of Ireland. These include the Covid-19 Working Capital Scheme, the Credit Guarantee Scheme, the Future Growth Loan Scheme and the Brexit Loan Scheme.
The SBCI Covid-19 Working Capital Scheme was announced on 11 March and opened for eligibility applications on 23 March. The Covid-19 Working Capital Scheme is offered by my Department in cooperation with the Department of Agriculture, Food and the Marine, and is supported by the InnovFin SME Guarantee facility. The scheme is operated by the SBCI. It currently makes available a fund of up to €200m to eligible businesses that have been negatively affected by impacts arising from the outbreak of Covid-19 to enable those businesses to innovate, change or adapt in response to the current business environment.
Following my further announcement on April 8 this Scheme is now being expanded to make available an additional €250 million in lending, which will bring the total amount of lending available under this scheme to €450 million.
The current Credit Guarantee Scheme aims to assist viable SMEs, which under normal lending criteria are unable to borrow from their bank, in accessing credit. The scheme operates by providing an 80% guarantee to participating finance providers (currently AIB, Bank of Ireland and Ulster Bank) on qualifying facilities to SMEs.
On 2 May, I announced a €2 billion COVID-19 Credit Guarantee Scheme to support lending to SMEs for terms ranging from 3 months to 6 years, which will be below market interest rates. This scheme will include primary producers.
The Future Growth Loan Scheme (FGLS) makes up to €300 million of loans available with a term of 8-10 years and is operated by the Strategic Banking Corporation of Ireland (SBCI) though participating lenders. My Department developed this scheme in cooperation with the Department of Agriculture, Food and the Marine.
Finance provided under the scheme is competitively priced and offered at favourable terms, for example no security required for loans up to €500,000. We have seen strong demand for the scheme since its launch in April 2019 across all sectors and regions including in exporting businesses and family businesses.
The initial €300m funding for the FGLS has been almost fully subscribed, supporting a significant level of strategic investment by businesses. On 8 April, I announced a further expansion of this scheme and my Department is now working through the details of a significant expansion to bring this funding to market as soon as possible.
The Brexit Loan Scheme continues to provide funding for businesses that have been demonstrably impacted by negative affects arising from the UK’s withdrawal from the EU.
