A new scheme has been opened by Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar, to help small businesses prepare for Britain’s exit from the single market and customs union at the end of this year.
Opened today (Monday, November 23) the new Microfinance Ireland (MFI) Brexit Business Loan will provide up to €25,000 to businesses whose turnover already is or is likely to fall 15% or more or if the business has a short-term cash-flow need as a result of Brexit.
Loans are available for between six months and three years, according to the Department of Enterprise, Trade and Employment.
- Loans from €5,000–25,000;
- Interest rate of 4.5% APR if submitted through the Local Enterprise Office Network or other referral partners, or 5.5% APR if you apply directly;
- No fees/charges or any hidden costs;
- Fixed repayments with no penalty for early repayment.
Commenting, the Tánaiste said:
“I know it’s been a really hard year, especially for our small, local businesses and imminent Brexit feels like another bodyblow on the way.
“This new loan is just one of the ways we are helping business to prepare. It will provide low cost finance of up to €25,000 and business owners can apply through MFI.
77% of MFI’s lending is to businesses outside of Dublin, which is important as businesses all over Ireland will feel the negative effects of Brexit.
“If you are a business owner and are wondering where to start, I’d recommend filling out our Brexit Readiness Checker first and having a look at what needs to be done in your business.
“Then please reach out and use the help that’s there,” the Tánaiste added.
- Less than 10 employees and annual turnover of up to €2 million;
- Unable to secure finance from a bank or commercial lending provider;
- Business turnover is or potentially could be impacted by a minimum of 15% or the business has a short-term cash-flow need as a result of Brexit.
MFI CEO Garrett Stokes said: “Businesses need to urgently start planning for the consequences of Brexit.
“While the impact will be greatest on exporters, importers need to determine their supply chain and source of imports and plan for any delays or changes required.
“Many businesses will be negatively impacted by Brexit or suffer a short-term cash-flow impact. The MFI Brexit Loan is ideally suited for businesses with these needs.”