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Covid-19 Pandemic Supports

Dáil Éireann Debate, Thursday - 15 October 2020

Thursday, 15 October 2020

Ceisteanna (15)

Pearse Doherty

Ceist:

15. Deputy Pearse Doherty asked the Tánaiste and Minister for Enterprise, Trade and Employment the number and value of loans that have been approved to date under the Covid-19 credit guarantee scheme; and if he will make a statement on the matter. [30094/20]

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Freagraí scríofa

The COVID-19 Credit Guarantee Scheme was launched by Government on the 7th September and is the biggest ever state-backed loan guarantee in Ireland.

The Scheme provides an 80% State guarantee on lending until the end of this year, for terms between 3 months and five and a half years and offers a range of lending products between €10,000 and €1 million including working capital and term loan facilities. Loans up to €250,000 are unsecured.

This Scheme aims to provide loans to businesses that have been negatively impacted as a result of the outbreak of COVID-19. It provides critical support to ensure businesses are facilitated in having access to credit facilities to assist in their trading needs. It is available to SMEs, small Mid-Caps and farmers.

The new Credit Guarantee Scheme was only launched 4 weeks ago. As of 9th October, 900 business applications have been recommended to the credit departments of the pillar banks for final approval to a value of almost €48m. 400 applications have been approved to date for over €21m: the number of loan facilities drawn almost doubled last week.

These loans are being drawn from all over the country, with businesses which have been deeply hit by the effects of the virus leading the way. The wholesale and retail sector accounted for 22% of loans drawn by value, the accommodation and food services sector accounted for 14% of loans, and the primary agricultural sector accounted for 10% , demonstrating that funding is getting to where it is most needed.

Further loan applications are in the pipeline with decisions yet to be made on those applications.

The Scheme is currently available through Allied Irish Banks, Bank of Ireland and Ulster Bank. In recognition of the need to make this Scheme as widely available as possible, an open-call for new lenders has been completed and proposals are being reviewed by the Strategic Banking Corporation of Ireland. I therefore expect to confirm a number of new lenders will be joining the Scheme in the coming weeks.

It is expected that greater numbers of lenders will increase the accessibility of the Scheme for more businesses and primary producers and help get much needed funding into the market.

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