€2bn Credit Guarantee Scheme to run until end of 2021

Irish Government’s Covid loan scheme – accessed so far by more than 5,000 businesses – is set to run until December.

The Irish Government’s €2bn Credit Guarantee Scheme for businesses affected by the Covid-19 pandemic is to be extended and will remain open for applications until the end of 2021.

The scheme is the biggest-ever State-backed loan guarantee in Ireland and offers an 80pc Government guarantee to participating lenders to provide Irish businesses with access to low interest loans.

“The majority of businesses using the scheme to date have been those with under 10 employees, in the retail, accommodation, construction and agriculture sectors”

As of 12 March, some 5,271 loan applications have been made under the scheme, amounting to €358.3m.

Under the scheme loans range from €10,000 to €1m for terms of up to five and half years. Loans under €250,000 do not require personal guarantees or collateral. Interest rates will vary depending on the loan but lower than market rates.

Keeping the lights on

Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar, TD, said the extension will allow vulnerable but viable businesses to remain operational.

“The majority of businesses using the scheme to date have been those with under 10 employees, in the retail, accommodation, construction and agriculture sectors.

“This scheme is just one of the ways we are helping. There is a package of grants, wage subsidies, tax relief, advice and training available to businesses who are struggling during this really difficult time.”

By John Kennedy (john.kennedy3@boi.com)

Published: 26 March 2021