The Brexit Loan Scheme, announced by Minister Paschal Donohoe in Budget 2018, is one step closer to being available to businesses following the signing of a formal agreement between the Government, the European Investment Bank (EIB) and the Strategic Banking Corporation of Ireland (SBCI).
The Brexit Loan Scheme will total €300 million, which includes a €23 million contribution from the State. It is aimed at companies that are exposed to the impacts of Brexit, or will be in the future.
At the signing of the agreement, Minister for Business, Enterprise and Innovation, Heather Humphreys said: “It’s time for Irish businesses to start planning and preparing for Brexit. The Brexit Loan Scheme will provide financing support at lower interest rates and with lower collateral requirements. I encourage businesses to use this financing to help improve their operational competitiveness, to innovate or to diversify their trade footprint as they prepare to face Brexit over the next year and beyond.”
Features of the Brexit Loan Scheme:
- Available from March 2018
- Loans can be used for working capital or to fund innovation, change or adaptation to mitigate the impact of Brexit
- 40% of the fund is ring fenced for food businesses
- Loan amount: €25,000 - €1,500,000
- Loan term: up to three years
- Loans less than €500,000 will be unsecured
- Interest rate: 4% or less
The full statement from last week’s signing event is available here.
The SFA will keep members updated once the application method is announced and the fund is open.
If you would like to discuss access to finance, access to government supports or the impact of Brexit on your business, contact Linda Barry, SFA Assistant Director, on email@example.com or 01 605 1626.