Grace Boland (Dublin Fingal West, Fine Gael)
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39. To ask the Minister for Enterprise, Trade and Employment for an update on the status of the growth and sustainability loan scheme as two banks (details supplied) have paused accepting new loan applications; and if he will make a statement on the matter. [50590/25]

Alan Dillon (Mayo, Fine Gael)
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The €500 million Growth and Sustainability Loan Scheme is a long-term loan guarantee scheme jointly developed by my Department and the Department of Agriculture, Food and the Marine. The scheme is underpinned by resources from the European Investment Bank Group (EIBG) and delivered by the SBCI.

The scheme offers long-term loans of between €25,000 and €3 million, with terms of up to 10 years, to SMEs, farmers, fishers, and small mid-caps. Loans of up to €500,000 are available unsecured, making finance more accessible for smaller businesses.

A minimum of 30% of the scheme’s lending is targeted at environmental sustainability and climate action, with the remainder supporting productivity and competitiveness. Loans for climate-related purposes also benefit from an additional interest rate discount.

As of the end of June, 1,930 loans have been approved, amounting to €432 million.

The Scheme is scheduled to remain open until June 2026 or until fully subscribed.

In terms of current availability, some participating banks have paused new applications due to high demand and substantial pipelines of existing applications. Specifically, Bank of Ireland and PTSB are not currently accepting new applications as they process their existing pipeline, which is expected to bring them close to their allocation limits. AIB has paused applications for the growth element of the scheme but continues to accept applications for green and climate-related loans.

However, non-bank lenders Finance Ireland and Close Brothers remain active participants and continue to accept new applications under the scheme.

Given the high demand, my Department is negotiating with the EIB Group and SBCI on the potential to expand the capacity and extend the duration of the Scheme.