Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

The Brexit loan scheme is a loan guarantee scheme for eligible businesses with up to 499 employees that need relatively short-term credit to address working capital challenges brought about by Brexit. It enables eligible Irish businesses to overcome temporary cashflow issues that might otherwise have adverse effects in the long term.

The purpose of the scheme is to support businesses responding to their Brexit challenges through innovating, changing or adapting to a Brexit or post-Brexit environment. These responses may include strengthening their product offerings, developing new markets to diversify their trade footprint, changing their organisational structure or developing new capabilities.

The scheme is open to State agency clients and to businesses that do not have any relationship with State agencies. Sole traders may also apply.

The scheme features a two-stage application process. First, businesses must apply to the Strategic Banking Corporation of Ireland, SBCI, to confirm their eligibility for the scheme. This application process requires businesses to use guidelines provided on the SBCI website to determine if they are eligible, and if so to complete the eligibility form. As part of the process, businesses must submit business plans demonstrating the means by which they intend to innovate, change or adapt to meet the challenges posed by Brexit. Guidance on completing a business plan is available on the SBCI website. The SBCI assesses the applications and successful applicants receive an eligibility reference number.

Successful applicants can then apply for a loan under the scheme with one of the participating finance providers. Participating finance providers are the Bank of Ireland, Ulster Bank and Allied Irish Bank, AIB. Approval of loans under the Brexit loan scheme is subject to the finance providers’ credit policies and procedures. As part of its efforts to promote the scheme, the SBCI has participated in numerous Brexit-related events, including a recent event in Cootehill, County Cavan.

The scheme was launched on 28 March this year and to date there have been 12 applications in total from Cavan and Monaghan, with six coming from each county.

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