Written answers

Tuesday, 2 November 2021

Department of Enterprise, Trade and Employment

Brexit Supports

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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34. To ask the Minister for Enterprise, Trade and Employment the details of the new Brexit impact loan scheme; and if he will make a statement on the matter. [52552/21]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Brexit Impact Loan Scheme makes up to €330m in lending available to eligible SMEs and small mid-caps seeking access to appropriate financing as they respond to the dual impacts of the pandemic and the UK’s withdrawal from the EU.

The Brexit Impact Loan Scheme is a successor to the original Brexit Loan Scheme. However, following consultation with stakeholders, this new scheme reflects a number of fundamental changes to the scheme design and loan features.

The new scheme does not require businesses to meet innovation criteria, which was a key issue raised for the former scheme. The new scheme is also open to businesses in the farming and fishing sectors and the maximum loan term has been extended from three to six years. The loan purpose has been broadened to include lending for investment purposes as well as for working capital and liquidity. This scheme also provides for some elements of refinancing.

Loans under the scheme will range from €25,000 to €1.5m and loans of up to €500,000 will continue to be available unsecured and offered at competitive interest rates, with the exact rate dependent on the participating lender.

Like its predecessor, the Brexit Impact Loan Scheme has been developed in cooperation with the Department of Agriculture, Food and the Marine and is operated by the Strategic Banking Corporation of Ireland. The scheme is supported by a counter-guarantee from the European Guarantee Fund [EGF] which is implemented by the European Investment Fund (EIF) on behalf of the European Commission.

The Brexit Impact Loan Scheme launched on 15 October, with 37 applications to SBCI for eligibility codes by October 21. Successful applicants can use their codes to apply for lending under the scheme with a participating lender.

The first lender to make the scheme available is Bank of Ireland, with other lenders expected to follow in the coming weeks, and the scheme will operate until the end of 2022.

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