Brexit Loan Scheme Will Provide €300m

22 Jan 2018 | 05.07 pm

Brexit Loan Scheme Will Provide €300m

SBCI agrees deal to boost fund with EIB

22 Jan 2018 | 05.07 pm

The European Investment Bank and the Strategic Banking Corporation of Ireland have signed an agreement which will allow the state to implement a €300m Brexit loan scheme to assist Irish firms affected by Brexit.

The deal allows the SBCI to leverage the €23m provided by the government, adding a further €277m via the EIB under the European Investment Fund. The scheme will be open to eligible businesses with up to 499 employees from March, and has the potential to benefit over 5,000 companies.

SBCI chief executive Nick Ashmore  (pictured) said: “Today’s signing is a key milestone for the SBCI in the delivery of the Brexit Loan Scheme to enable eligible businesses to implement the changes necessary to address the challenges they will face because of Brexit. This EIF guarantee agreement, backed by the European Commission, and together with the exchequer funding secured by the Minister for Business, Enterprise and Innovation and the Minister for Agriculture, Food and the Marine, will enable the SBCI to deliver €300 million of much needed working capital facilities into impacted Irish businesses.”

A  Department of Business, Enterprise and Innovation’s survey, which was conducted last autumn, found that while 75% of SMEs expect to be impacted by Brexit over the next 18 months, only 16% of SMEs have a formal Brexit contingency plan. Almost half of firms surveyed were not investing in their businesses, with Brexit uncertainty the key reason. Furthermore, 21% of medium sized businesses have postponed at least one investment decision in reaction to Brexit.

Enterprise minister Heather Humphreys added: “It’s time for Irish businesses to start planning and preparing for Brexit. The Brexit Loan Scheme will provide financing support at lower interest rates and with lower collateral requirements. I encourage businesses to use this financing to help improve their operational competitiveness, to innovate or to diversify their trade footprint as they prepare to face Brexit over the next year and beyond.”

The Brexit Loan Scheme will provide financing to businesses that are either currently impacted by Brexit or will be in the future. The scheme will make €300 million available to businesses with up to 499 employees at an interest rate of 4% 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
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