Pádraig O'Sullivan (Cork North Central, Fianna Fail)
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118. To ask the Minister for Trade, Enterprise and Employment the amount of the €2 billion Covid-19 credit guarantee scheme that has been approved and drawn down; and if he will make a statement on the matter. [40393/20]

Leo Varadkar (Dublin West, Fine Gael)
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The COVID-19 Credit Guarantee Scheme was launched by Government in September to support those businesses that have been negatively impacted as a result of the outbreak of COVID-19. It is the biggest ever state-backed loan guarantee Scheme in Ireland.

The Scheme was originally scheduled to run until 31 December 2020 in line with the requirements of the Temporary Framework on State Aid. Following the extension of the terms of the Temporary Framework, Government approved on 24 November, the extension of the COVID-19 Credit Guarantee Scheme to run until 30 June 2021.

The Scheme provides an 80% State guarantee on lending for terms between 3 months and five and a half years and offers a range of lending products between €10,000 and €1 million including working capital and term loan facilities. Loans up to €250,000 are unsecured. It is available to SMEs, small Mid-Caps and primary producers.

As a result of the high level of the State guarantee, loans are being provided at interest rates lower than the current market rate for similar loans. This low-cost funding along with other grants which are available provides ready access to funding for businesses during this unprecedented time.

As at 20 November, 2,301 applications were received for a value of €135m and 1,140 loans with a value of €54m were approved and drawn as at 19 November.

These loans are being drawn from all over the country, with businesses which have been deeply hit by the effects of the virus leading the way. The wholesale and retail sector accounted for 20% of loans drawn by value, the accommodation and food services sector accounted for 13% of loans drawn by value, and the primary agriculture and fisheries sector accounted for 12% of loans drawn by value, demonstrating that funding is getting to where it is most needed.

The Scheme is currently available through Allied Irish Banks, Bank of Ireland and Ulster Bank Ireland. In recognition of the need to make this Scheme as widely available as possible an open-call for new on-lenders has been completed and proposals are being reviewed by the Strategic Banking Corporation of Ireland in respect of potential new lenders. I therefore expect to confirm a number of new lenders will be joining the Scheme in the coming weeks which will increase access to the Scheme and make a wider range of products available to businesses.