Michael Ring (Mayo, Fine Gael)
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165. To ask the Minister for Enterprise, Trade and Employment if he will reopen a scheme (details supplied) to assist businesses; and if he will make a statement on the matter. [8946/22]

Leo Varadkar (Dublin West, Fine Gael)
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In the early stages of the pandemic, as part of an emergency response, a proportion of the funding available under the Brexit Loan Scheme was made available to COVID-19-impacted businesses through the Strategic Banking Corporation of Ireland(SBCI) COVID-19 Working Capital Scheme (COVID-19 WCS).  Loans under this scheme are similar to those offered under the Brexit Loan Scheme, but to businesses seeking to innovate, change or adapt in response to the impacts of the pandemic. The COVID-19 WCS is underpinned by a counter-guarantee from the European Investment Bank Group through its InnovFin SME guarantee instrument.

Three banks participated in this scheme.  Over €100 million was sanctioned across more than 800 loans up to September 2020. After this the uptake of this scheme tapered off as the tailor made COVID-19 Credit Guarantee Scheme had become available in the market. The COVID-19 WCS is now closed to new eligibility applications, however some eligibility code holders may yet proceed to loan application.  As of 14 February 2022, 987 loans progressed to sanction under the scheme, to a total value of €128,196,963. 

The COVID-19 Credit Guarantee Scheme is the largest scheme of its type in the history of the State and provides up to €2 billion in lending.  Since its launch in September 2020, it has enabled vital access to loans for the SME sector.  There have been over 9,186 loans drawn or approved to a value of €640  million under the Scheme up to 31 January  2022. These loans are being drawn from all over the country by businesses which have been most impacted by the effects of COVID-19.  The wholesale and retail sector, the accommodation and food services sector, the construction sector and the primary agriculture and fisheries sector account for 58% of all loans drawn under the scheme demonstrating that funding is getting to where it is most needed.

Loans of up to €1 million are available for up to 5.5 years. Loans under €250,000 do not require any personal guarantees or collateral.  The Scheme is currently available through three commercial banks, six non-bank lenders and nineteen credit unions thus providing competition in the market and a variety of loan products. This long-term policy goal of diversification adds competition in the market and ensures a wide range of loan products are available throughout the regions.

The Scheme has been developed in accordance with the European Commission’s State Aid Temporary Framework and has been extended three times since September 2020 following extensions of the Temporary Framework by the European Commission.  The last extension was in December 2021 and makes the scheme available until 30 June 2022.  Any further extension of the scheme beyond that point is dependent on an extension of the Temporary Framework.  I would therefore encourage businesses to avail of these low-cost loans in the remaining time of the scheme, which can be used for both working capital and investment purposes.