Dáil Éireann Debate, Wednesday - 17 January 2024
354. Deputy Paul Kehoe asked the Minister for Finance the reason non-green projects under the SCBI growth and sustainability loan scheme are not being funded in the initial tranche of loans; and if he will make a statement on the matter. [1220/24]
Amharc ar fhreagraI am pleased to advise the Deputy that applications can be made through the SBCI Hub for funding under both the growth and sustainability elements of the Growth and Sustainability Loan Scheme (GSLS). Successful applicants will receive an eligibility code which they can provide to a participating on-lender.
AIB and Finance Ireland are currently accepting applications under both elements of the scheme, while BOI are currently prioritising applications for loans under the sustainability element. Additional on-lenders are expected to join the scheme in the coming weeks.
The GSLS makes €500 million in low-cost long term finance available to SMEs, including farmers and fishers, to facilitate strategic investment in growth and resilience, climate action and sustainability, and to increase productivity and competitiveness. Loans under the GSLS are available from €25,000 to €3 million, with up to €500,000 available unsecured.
The scheme is underpinned by a counter-guarantee from the European Investment Fund with support from the Departments of Enterprise, Trade and Employment and Agriculture, Food and the Marine.
Loans relating to the 'growth' strand will constitute up to 70% of the scheme's lending capacity, and could be directed towards investment in tangible and intangible assets, machinery and equipment, research and development, premises improvement as well as various other measures to expand businesses and improve their resilience.
At least 30% of the scheme’s lending capacity is directed towards climate action and environmental sustainability, recognising that it is crucial that SMEs, including farmers, play their part in Ireland’s sustainable transition, and demonstrating the Government’s support for this goal. Loans under this strand benefit from an additional ‘green’ interest rate discount.
