Dáil Éireann Debate, Tuesday - 14 July 2020
93. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the degree to which he is of the view that the available funding under the microenterprise loan scheme can be made available to a vastly increased number of applicants thereby increasing their chances of recovery and progress in the aftermath of Covid-19; and if he will make a statement on the matter. [16009/20]
Amharc ar fhreagraThe COVID-19 Loan, available from Microfinance Ireland (MFI), was introduced as a support to microenterprises to help them access funding arising from the COVID-19 crisis. These loans are available for eligible microenterprises responding to Covid-19-related difficulties, the negative impact of which must be a minimum of 15% of actual or projected income or profit. Loans up to €50,000 are available with terms that include a six months interest free and repayment free moratorium, with the loan to then be repaid over the remaining 30 months of the 36-month loan period. Interest rates of between 4.5% and 5.5% are available.
MFI provides an essential support for very small regional businesses who are hoping to reboot their economic activity over the coming weeks and months.
There has already been a very significant increase in both the value of loans approved and the number of loans approved as this scheme has seen unprecedented levels of interest. As of July 10th, loans of €17.1 million have been approved since the commencement of the Scheme in March, compared to a total loan value approved in 2019 of €6 million. The number of loans approved has also shown a very significant increase with 629 loans approved since the commencement of the scheme compared to 452 loans approved in total in 2019.
Due to this unprecedented demand, lending through this scheme has currently been paused as legislation is required to increase the funding of MFI which is currently at capacity. This legislation passed through the Houses of the Oireachtas on the 8th and 9th of July and signed by the President on the 10th July last. Microfinance Ireland and officials from my Department will work together to reopen this Loan Fund as soon as possible.
