Cormac Devlin
Ceist:63. Deputy Cormac Devlin asked the Tánaiste and Minister for Enterprise, Trade and Employment the status of the Covid credit guarantee scheme; and if he will make a statement on the matter. [52617/21]
Amharc ar fhreagraTuesday, 2 November 2021
Ceisteanna (63)
Freagraí scríofa
The COVID-19 Credit Guarantee Scheme is the largest scheme of its type in the history of the State and provides for up to €2 billion in lending. It is just over one year since the Guarantee Scheme was launched in September 2020. As of the 13th of October this year, the scheme has provided vital access to loans for seven thousand, nine hundred and twenty-three SME businesses in all parts of the country. The Scheme has provided loans of over €551 million to these businesses, many of which are those sectors most impacted by the pandemic such as the wholesale and retail sector, accommodation and food services, and construction. These three sectors alone, account for forty-six percent of the value of loans drawn. Fifty-five thousand jobs have been maintained as a result of the Covid Credit Guarantee Scheme.
Loans of up to €1 million are available for up to 5.5 years. Loans under €250,000 do not require any personal guarantees or collateral. The Scheme has an 80 percent guarantee and is based on contingent liability. What this means is that there is no cost to the State unless a participating enterprise is unable to pay back the loan for more than 90 days, whereupon the loan enters a default stage. The finance provider can then call on the guarantee for 80 percent of the outstanding balance.
The Scheme is currently available through three commercial banks, six non-bank lenders and nineteen credit unions thus providing competition in the market and a number of loan products. This long-term policy goal of diversification adds competition in the market and ensures a wide range of loan products are available throughout the regions.