Dáil Éireann Debate, Wednesday - 20 May 2020
641. Deputy Michael McGrath asked the Minister for Business, Enterprise and Innovation the interest rate that will be applicable to loans advanced under the new scheme for the €2 billion credit guarantee scheme announced in early May 2020; and if she will make a statement on the matter. [6815/20]
Amharc ar fhreagraAs announced on Saturday 2 May, Government has agreed a new €2 billion COVID-19 Credit Guarantee Scheme as a further development of the existing Credit Guarantee Scheme already available from AIB, BOI and Ulster Bank. This Scheme forms a major component of the Government’s strategy to aid SMEs in these difficult times by providing critical support to ensure businesses are facilitated in having access to credit facilities to assist a return to a more regular trading environment. It will provide an 80% guarantee on lending to SMEs until the end of this year, for terms between 3 months and 6 years. The guarantee will be able to be used for a wide range of lending products between €10,000 and €1 million that have a maximum term of 6 years or less.
The Scheme will be available to all SME sectors, including primary producers. It will also have interest rates below current market rates. The implementation of this Scheme will require primary legislation, the drafting of which has been approved by Government, and my officials are already working with the Office of the Parliamentary counsel on this drafting work.
