Written answers

Thursday, 18 October 2018

Department of Jobs, Enterprise and Innovation

Brexit Supports

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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16. To ask the Minister for Jobs, Enterprise and Innovation the number of small and medium enterprises that have been sanctioned for funding and have received funding under the €300 million SME working capital loan scheme. [42564/18]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Brexit Loan Scheme provides affordable working capital to eligible businesses with up to 499 employees that are or will be impacted by Brexit and meet the scheme criteria. The €23 million exchequer funding (€14 million from my Department and €9 million from the Department of Agriculture, Food and the Marine) has been leveraged to provide a fund of up to €300 million.

It has been designed to assist eligible Irish businesses in the short-term to deal with the challenges of Brexit, which include the pressures of increased market instability and currency volatility. The scheme is open to both State Agency clients and 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 a business plan, demonstrating the means by which they intend to innovate, change or adapt to meet the challenges posed by Brexit. Guidance is available on the SBCI website on completing a business plan. The SBCI assess 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. Approval of loans under the Brexit Loan Scheme is subject to the finance providers’ own credit policies and procedures. As part of efforts to promote the scheme, the SBCI and officials of my Department have participated in numerous Brexit-related events, including the recent Getting Ireland Brexit Ready events in Cork and Galway. Two more of these events will take place this month in Monaghan and Dublin.

The scheme was launched on 28 March this year. As of 12 October there have been 262 applications for eligibility under the scheme, of which 224 have been approved by SBCI. 38 loans to SMEs have progressed to sanction at bank level to a value of €8.5 million. I have recently met with SBCI and the three pillar banks involved in the Scheme and I will continue to engage with them on the ongoing promotion of the scheme over the coming months.

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