Funding To Help Businesses Offset Brexit

23 Dec 2020 | 01.40 pm

Funding To Help Businesses Offset Brexit

Microfinance Ireland Brexit Business Loan launches

23 Dec 2020 | 01.40 pm

A new government loan scheme that launches today (November 23) will provide up to €25,000 in finance to small businesses that are likely to be hit by the effects of Brexit.

Administered by Microfinance Ireland (MFI), the Brexit Business Loan will provide loans of between €5,000 and €25,000 to businesses whose turnover already is or is likely to fall 15% or more, or if the business has a short-term cashflow need as a result of Brexit. Loans are available for between six months and three years.

Those eligible for the loan comprise any business (sole trader, partnership or limited company) with fewer than 10 employees and annual turnover of up to €2m, which is unable to secure finance from a bank or commercial lending provider.

An interest rate of 4.5% APR is applied on the Brexit Business Loan if an application is submitted through the Local Enterprise Office network. For applications made directly to MFI, an interest rate of 5.5% APR is charged.

 

 

Launching the new loan scheme, enterprise minister Leo Varadkar said that 77% of MFI’s lending is to businesses outside of Dublin. “If you are a business owner and are wondering where to start, I’d recommend filling out our Brexit Readiness Checker first and having a look at what needs to be done in your business. Then please reach out and use the help that’s there,” Varadkar added.

Garrett Stokes (pictured), CEO of MFI, said that businesses need to urgently start planning for the consequences of Brexit. “Many businesses will be negatively impacted by Brexit or suffer a short-term cashflow impact. The Microfinance Ireland Brexit Loan is ideally suited for businesses with these needs.”

Sven Spollen-Behrens of the Small Firms Association commented: “The extension of this new Brexit Business Loan to alcohol producers will be well received by small distilleries and microbreweries, as the drinks sector is heavily reliant on the UK market. Small distilleries and visitor centres have suffered greatly in recent months due to reduced tourist numbers.”

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