The Scheme will make up to €300 million available to eligible Irish businesses[i]. The finance will be easier to access, more competitively priced, and at more favourable terms than current offerings.
This Department, in partnership with the Department of Agriculture, Food and the Marine (DAFM)[ii], will launch the Scheme in March 2018. It will be delivered by the Strategic Banking Corporation of Ireland (SBCI) through commercial lenders.
It will be open both to State Agency/non-State Agency clients.
- 4% maximum interest rate (participating lenders may compete below this level)
- Terms and conditions will be designed to ensure the loans are accessible
- The loans will be for up to three years
- The Scheme will run for two years (March 2018 – March 2020)
- Loans will range from €25,000 to €1.5 million per eligible enterprise
- Unsecured loans up to €500,000
Applications will be cleared for Scheme eligibility through the SBCI.
To be eligible, applicants must:
- Be a viable business of fewer than 500 employees
- Be exposed to the (current or potential) impacts of Brexit
- Meet the Scheme criteria
Loans must be for the purpose of:
- Supporting working capital or cash flow needs
- Funding innovation, change or adaption of the business to mitigate the impact of Brexit
Loans will then be provided by commercial lenders, subject to normal lending criteria.
Using a combination of Irish exchequer and EU guarantees (through the EIB Group and the InnovFin loan guarantee scheme), the Scheme will leverage up to €300 million of lending to Irish Enterprises at a maximum interest rate 4% at a cost to the Exchequer of €23 million (€14 million provide by Department of Business, Enterprise and Innovation and €9 million provided by Department of Agriculture, Food and the Marine).
Further Details: Further details of the loans will be provided over the coming weeks.
The Department of Business, Enterprise and Innovation has a number of other finance for growth schemes in place, and applications can be made at any time to the existing Credit Guarantee Scheme and Micro Finance Ireland.
All businesses, whether clients of State Agencies or not, can also avail of the free Brexit Planning Tool: Prepare for Brexit SME Scorecard.
SME’s involved in manufacturing or internationally tradeable services may be interested in InterTradeIreland’s Brexit Start to Plan Voucher Scheme.
[i] Due to state aid rules, the Scheme will not be available to farmers and fishermen. An alternative scheme for primary producers in the agriculture sector and fishermen is currently under consideration by the Department of Agriculture, Food and the Marine.
[ii] Department of Agriculture, Food and the Marine share of funding ensures that at least 40% of the fund will be available to food businesses.