Government opens €300m Brexit Loan Scheme

The Brexit Loan Scheme has been officially opened, allowing applications apply for part of a €300m fund.

Eligible businesses can now apply for the Scheme through the participating finance providers: the Scheme is open through Bank of Ireland and Ulster Bank, with AIB following in June.

The Scheme will be open to eligible businesses with up to 499 employees from today, and has the potential to benefit over 5,000 companies.

The first step for businesses will be to complete the eligibility criteria for the Scheme on the SBCI website.

Speaking at the launch, Minister Humphreys said the Scheme will provide much-needed finance to eligible business impacted by the UK’s decision to leave the European Union.

"I am confident that it will make a real difference to firms, enabling them to adapt, change and innovate. This, in turn, will help them to become more competitive, a fundamental trait in any resilient business”.

In last October’s budget, €14m was secured by the then Minister for Business, Enterprise and Innovation, together with €9m by the Minister for Agriculture, Food and the Marine, for the Brexit Loan Scheme. The Department of Agriculture, Food and the Marine’s share of funding ensures that at least 40pc of the fund will be available to food businesses.

Minister Michael Creed said the Food Wise 2025 strategy outlines the agri-food sector’s unique and special position within the Irish economy and its potential for future growth.

"Brexit is obviously a significant challenge given our unique exposure to the UK market. Food businesses will need to focus on competitiveness and innovation in order to continue the growth in Irish agri-food exports, which reached a record €13.6 billion in 2017."

EIB Vice President for Ireland, Andrew McDowell, said the Brexit Loan Scheme today demonstrates the European Investment Bank’s commitment to the Irish SME market and we are delighted to be partnering with SBCI in Ireland to target innovative Irish SMEs.

"This €300m joint scheme with SBCI to address Irish companies’ working capital challenges, bears testament to the EIB Group’s strengthened support to enable new investment by thousands of companies across Ireland at a time of uncertainty relating to Brexit.”

Loan Features

The Brexit Loan Scheme, which was announced in the 2018 budget will provide affordable financing to businesses that are either currently impacted by Brexit or will be in the future.

The Scheme, which will be delivered by the Strategic Banking Corporation of Ireland (SBCI) through commercial lenders will make €300m available to eligible businesses with up to 499 employees at an interest rate of 4pc or less.

Loan features:

• Loan amount from €25,000 up to a maximum of €1,500,000
• Loan term of up to 3 years
• Loans less than €500,000 will be unsecured
• Interest rate of 4% or less.

Loans can be used for future working capital requirements to fund innovation, change or adaption the business to mitigate the impact of Brexit.

Online Editors