Aodhán Ó Ríordáin (Dublin Bay North, Labour)
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21. To ask the Minister for Trade, Enterprise and Employment the number of applications to date under the Covid-19 credit guarantee scheme by month; the number of successful applications to date; the reason for applications not being successful; and if he will make a statement on the matter. [40573/20]

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.The table below provides a breakdown of the number and value of loan applications received and the number and value of loans drawn down under the Scheme.

Table of loan applications received and loans drawn

Applications to access the COVID-19 Credit Guarantee Scheme are subject to eligibility criteria which are assessed by the credit departments of the individual lenders. Decisions to refuse applications for loans and the reasons for doing so, are confidential matters between the applicant and the lender. The Department plays no role in the application or decision-making process, which is fully delegated to the participating lenders.

Where a loan application has been refused it can be appealed through the bank's internal appeal system or to the Credit Review Office (CRO). The CRO helps SMEs who have had an application for credit of up to €3 million declined or reduced by the main banks, and who feel that they have a viable business proposition.

The COVID-19 Credit Guarantee 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.

Aodhán Ó Ríordáin (Dublin Bay North, Labour)
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22. To ask the Minister for Trade, Enterprise and Employment the value of successful applications under the Covid-19 credit guarantee scheme by month; the average loan value; the largest size of loans; if a list of successful applicants will be published; and if he will make a statement on the matter. [40574/20]

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.The table below provides a breakdown of the number and value of loan applications received and the number and value of loans drawn down under the Scheme.

Table of loan applications received and loans drawn

The average value of loans drawn is €47,714 and the highest value of loan drawn is €640,000.

Applications to access the COVID-19 Credit Guarantee Scheme are subject to eligibility criteria which are assessed by the credit departments of the individual lenders. Decisions to grant applications for loans are confidential matters between the applicant and the lender. The Department plays no role in the application or decision-making process, which is fully delegated to participating lenders. The Department will therefore not be publishing a list of businesses granted loans by participating lenders.

The COVID-19 Credit Guarantee 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.