Future Growth Loan Scheme opens to applications
The Future Growth Loan Scheme to allow for the roll out of €300 million in funding to eligible Irish SMEs including farmers is now open for applications.
Businesses can apply for loan eligibility through the SBCI from today. Three finance providers - AIB, Bank of Ireland and KBC - have agreed to participate in the Scheme and negotiations are ongoing with another two.
Ulster Bank has said it intend to participate in the scheme and said it is working closely with SBCI to make it available for its customers as soon as possible.
The Scheme, which will be delivered by the Strategic Banking Corporation of Ireland (SBCI) through commercial lenders makes €300 million available to eligible businesses with up to 249 employees at an interest rate of 4.5% or less for loans up to €249,999 and 3.5% and less for loans greater than or equal to €250,000.
The Future Growth Loan Scheme features a two-stage application process. Applications for eligibility under the scheme will be made through the SBCI website. The SBCI will assess the applications and those successful will be issued an eligibility reference number.
Eligible businesses will then be able to apply for a loan under the scheme with one of the participating finance providers using the eligibility reference number. Approval of loans are subject to the finance providers’ own credit policies and procedures.
- Loan amount from €100,000 (€50,000 for primary agriculture) up to a maximum of €3,000,000
- Loan term from a minimum of 8 years to a maximum of 10 years
- Loans less than €500,000 will be unsecured
- Interest rate of 4.5% for loans up to €249,999 and 3.5% and less for loans greater than or equal to €250,000.