The Strategic Banking Corporation of Ireland is inviting applications from eligible SME’s to apply for loans from the Future Loan Growth Scheme which was launched on 17^th April.  The available fund is worth €300m and is in conjunction with three major banks- AIB, KBC and Ulster Bank.  It is hoped that two other banks will come onboard as negotiations are still ongoing.

The scheme is available to eligible businesses with up to 249 employees.  Interest rates for loans are based on the amount of capital borrowed.  Loans of €250,000 or more will have an interest rate of 3.5% and amounts greater than or equal to €249,999 will have a rate of 4.5% interest applied.  Loans of up to €3 million are available through the scheme and at least 40% of the fund is being made available to the agri-food sector.

To apply for a finance via the scheme applications must first be submitted via the SBCI website https://sbci.gov.ie/schemes/future-growth-loan-scheme.  Once an application has been assessed and eligibility approved the applicant will receive an eligibility reference number. 

Eligible businesses can then apply for a loan under the scheme with one of the participating banks using their eligibility reference number.  Loan approval is subject to the finance providers own credit policies and procedures.

Loan Features:

Loan amount from €100,000 (€50,000 for primary agriculture) up to a maximum of €3,000,000

Loan term from a minimum of 8 years to a maximum of 10 years

Loans less than €500,000 will be unsecured

Interest rate of 4.5% for loans up to €249,999 and 3.5% and less for loans greater than or equal to €250,000.

Loans can be used for investment in tangible or intangible assets for the purpose of process and organisational innovation.  They can also be used for investment in tangible assets on agricultural holdings linked to primary agricultural production.

Minister for Finance Paschal Donohoe said “This is an important Scheme that offers long-term financing to small and medium enterprises in Ireland to support them investing strategically in a post-Brexit environment. It is not currently possible for Irish SMEs to access loans of more than seven years and this Scheme which offers loans of between 8 and 10 years, is a very positive development.”