€1bn loan scheme to boost Irish SME growth and green investment

Ireland’s Growth and Sustainability Loan Scheme doubles to €1bn, giving SMEs and agri-businesses access to long-term finance until June 2029.

The Irish Government is doubling the lending capacity of the Growth and Sustainability Loan Scheme to €1bn as it moves to extend the financing programme for Irish SMEs until 2029.

Minister for Enterprise, Tourism and Employment Peter Burke, TD, and Minister for Agriculture, Food and the Marine Martin Heydon, TD, announced an additional €500m for the scheme, increasing its capacity from €500m to €1bn.

The Government-backed scheme will also be extended until 30 June 2029. Five finance providers will participate in the expanded scheme: Bank of Ireland, AIB, PTSB, Close Brothers and Finance Ireland.

The move follows strong demand since the scheme was launched in September 2023. Around 2,000 businesses across Ireland have used it to invest in their operations, with the original €500m lending capacity now substantially deployed.

The additional funding will provide SMEs, including farmers, foresters and fishers, with access to longer-term finance for business expansion, innovation, digitalisation, climate action, energy efficiency, renewable energy and research and development.

At least 30% of the scheme’s lending volume will continue to be targeted at environmental sustainability.

KEY NUMBERS: Growth and Sustainability Loan Scheme

Backing Irish businesses

Peter Burke, TD, Minister for Enterprise, Tourism and Employment, said the increased funding reflected demand from SMEs for affordable investment finance.

“I am pleased to deliver a major expansion of the Growth and Sustainability Loan Scheme, doubling the funding available to Irish businesses from €500 million to €1 billion. This significant increase responds to the ambition of Irish enterprise, with very strong demand for the Scheme by SMEs to date. We are committed to backing Irish businesses and ensuring that SMEs have access to affordable, long-term finance so they can continue to invest, grow and compete at home and abroad.

👉 No tech background needed to bring your business into the AI age! Secure your Google AI Professional Certificate to complete the certification at no cost. Apply now and get started!

“By increasing both the scale and duration of the Scheme, we are giving businesses the confidence to make ambitious long-term investments, and seize new opportunities. This expansion will support enterprises in every region of the country to innovate, scale and future-proof their operations, while contributing to a more sustainable, competitive economy.”

The scheme is managed and delivered by the Strategic Banking Corporation of Ireland (SBCI), working with the European Investment Bank Group, the Department of Enterprise, Tourism and Employment and the Department of Agriculture, Food and the Marine.

Focus on agri-food investment

Martin Heydon, TD, Minister for Agriculture, Food and the Marine, said demand from the agri-food sector demonstrated the need for longer-term investment finance.

“I am delighted to see the expansion of the Growth and Sustainability Loan Scheme by another €500 million, bringing total funding to €1 billion. The success of the scheme and the continuing demand from businesses, especially in the agri-food sector, demonstrates the need for this type of longer-term, affordable investment finance, and this expansion will ensure that farmers, fishermen and women, foresters and food businesses, can access the finance they require to invest, adapt and grow for the future.”

Heydon also highlighted the availability of unsecured borrowing through the scheme.

“The availability of unsecured loans up to €500k under the scheme, is critical to supporting investment in productivity, climate adaption, and environmental sustainability, helping businesses to become more resilient and deliver on our climate and food security ambitions, such as those set out in Food Vision 2030.”

Eligible businesses can access loans on more favourable terms than those typically available through standard commercial lending, with additional interest-rate discounts available for qualifying green investments.

Boost for Irish enterprise

John Feeney, Bank of Ireland chief executive, Corporate and Commercial Banking, said access to long-term funding could help SMEs pursue investment and innovation.

“Bank of Ireland is delighted to participate in the second phase of the Growth and Sustainability Loan Scheme that will provide businesses with access to low-cost, long-term finance for growth and sustainability investments.

“Supporting Irish SMEs to invest and innovate is critical to grow the Irish economy and boost national economic resilience. I would encourage all SMEs to explore how this scheme can help them achieve their growth and sustainability ambitions.”

Ioannis Tsakiris, European Investment Bank Vice President, described the expansion as a significant increase in financing capacity for businesses.

“This is a major boost for Irish enterprise. Increasing the scheme to €1 billion means more businesses across Ireland can turn ambition into investment – expanding, innovating, cutting emissions and building resilience. Through the EIB Group’s partnership with the Irish Government, SBCI and participating lenders, the EIB and EIF are helping ensure that finance reaches the businesses and communities driving Ireland’s next phase of sustainable growth.”

Colin Moran, SBCI CEO, said the level of demand showed the appetite among Irish businesses to continue investing.

“We’re seeing strong demand for the Growth and Sustainability Loan Scheme and this shows the ambition and confidence that Irish SMEs and agri-businesses have to invest in their future. By increasing the Scheme’s lending capacity to €1bn, we can support even more SMEs across Ireland to invest in growth, enhance productivity, strengthen competitiveness and advance their sustainability ambitions.”

Moran said the expanded programme also demonstrated the impact of collaboration between the SBCI, Government departments, European institutions and lenders.

“As Ireland’s National Promotional Institution, the SBCI works to address financing gaps and improve access to finance for SMEs. This extension demonstrates the impact that strong partnerships between the SBCI, Government departments, the EIB Group and lenders can deliver for Irish businesses, local communities and the wider economy.”

Main image at top: Ricardo Frazão (EIF Structured Finance Manager Portfolio Guarantees), Oliver Gilvarry (Department of Finance Assistant Secretary General with responsibility for Banking), Lorraine Green (SBCI Product Manager), Colin Moran (SBCI CEO), Niamh Smyth (Minister of State for Trade Promotion, Artificial Intelligence and Digital Transformation), Martin Heydon (Minister for Agriculture, Food and the Marine), Peter Burke (Minister for Enterprise, Tourism and Employment), Noel Grealish (Minister of State for Food Promotion, New Markets, Research and Development), Diarmaid Kehoe (Head of the EIB Group Office Ireland), Maeve Cotter (SBCI Senior Manager Sustainability Lending), and Vincent Van Steensel (EIF Head of Mandate Origination & Relationship Management)