Guaranteed Loans Average €158,000

18 May 2018 | 12.02 pm

Guaranteed Loans Average €158,000

Q1 Credit Guarantee Scheme report

18 May 2018 | 12.02 pm

The Strategic Banking Corporation of Ireland sanctioned €4.4m in funding under the Credit Guarantee Scheme for SMEs through Q1 2018, according to its latest report, with the total amount extended coming to €88.8m since it began operations in late 2012.

The purpose of the CGS is to encourage additional lending to SMEs, not to substitute for conventional lending, enabling to develop a positive track record with the lender with the objective of returning to standard commercial credit facilities in time. It also puts Irish SMEs on a level footing relative to trading competitors who have such a guarantee in their own countries. 

Some other aspects of the report:

  • Most of the lending has been sanctioned in the East, South and Mid-West, with these three regions accounting for 84% of lending currently live or repaid. 
  • Approved lending is dominated by eight industry sectors accounting for 92% of the total lending 
  • The recently sanctioned loans are expected to create 2,200 new jobs, with 1,320 being maintained
    Of the SMEs participating in the CGS, 53%, were established during the period 2010-2018 
  • The main reason for seeking finance was for working capital purposes — two thirds of all loans
  • The average loan amount sanctioned by the participating lenders was €158,000.

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