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Library of Knowledge No. 37

The Scheme offers a partial Government guarantee (80%) to participating finance providers against losses on qualifying finance agreements to eligible SMEs, small Mid-Caps and primary producers.

It is designed to incentivise participating finance providers to continue to play their role in supporting the availability of additional liquidity to Irish businesses.

The Scheme is operated by the Strategic Banking Corporation of Ireland (SBCI) through participating finance providers.  i.e. The loan is available through your financial providers BOI, AIB, Ulster Bank and KBC but is 80% guaranteed by SBCI (Strategic Banking Corporation of Ireland).

Scope of the scheme

The Scheme is targeted towards companies who are unable to access credit because of three distinct barriers to lending;

• Inadequate collateral.
• Novel business market, sector or technology which is perceived by lenders as higher risk under current credit risk evaluation practices.
• Need for refinancing caused by the exit of an SMEs lender from the Irish market.

Key features of the scheme

• Facilities of €10,000 up to €1m.
• Terms of up to 7 years.
• Term Loans, Demand Loans and Performance Bonds.
• You may be able to avail of between a three to six-month interest-only payment period.
• Initial product supported for the Scheme is a term loan.

What kind of businesses are eligible for the Scheme?

This Scheme is available to eligible SME and small Mid-Cap businesses, including primary producers (businesses engaged in farming and fishing), established in Ireland.

Your business must also have experienced an adverse impact of minimum 15% in actual or projected turnover or profit due to the impact of COVID-19.

For further information and full details are available through the SBCI website.

Stay Safe & Well.