€8.5 million worth of loans sanctioned under €300 million Brexit Loan Scheme

A total of €8.5 million worth of loans has been approved under the €300 million Brexit Loan Scheme, which opened for applications earlier this year.

The Minister for Business, Enterprise and Innovation, Heather Humphreys, recently confirmed that 262 applications have been received under the scheme.

Some 224 of these have been approved by the Strategic Banking Corporation of Ireland (SBCI) and 38 of these loans have progressed to sanction at bank level as of October 12.

262 applications received, 224 approved by SBCI, 38 Loans progressed to sanction at bank level to a value of €8.5 million, as of Friday, October 12, the minister added.

The scheme opened for applications towards the end of March 2018. The €300 million scheme is offered in partnership with the Department of Business, Enterprise and Innovation and the Department of Agriculture, Food and the Marine.

It is also supported by the InnovFin SME Guarantee Facility, with the financial backing of the European Union under Horizon 2020 Financial Instruments.

The scheme is aimed at businesses which export or import products, services or raw materials to or from the UK. It is also aimed at those indirectly exposed to the UK, such as by transacting products, services or raw materials with an enterprise that is directly exposed to the UK.

Loan amounts of between €25,000 and €1.5 million are available per eligible enterprise.

There is a maximum interest rate of 4% and loan terms range from one year to three years. Unsecured loans of up to €500,000 are available, while optional interest-only repayments may be available at the start of the loans.

The loan amount and term is dependent on the loan purpose, according to the SBCI.

Loans can be used for future working capital requirements or to fund innovation, change or adaptation of the business to mitigate the impact of Brexit.

Who can apply

Viable micro, small and medium-sized enterprises (SMEs) and ‘Small Mid-Cap’ enterprises that meet the eligibility criteria can apply for loans.

SMEs are defined by the Standard EU definition (Commission Regulation 2003/361/EC) as enterprises that:

Have fewer than 250 employees;
Have a turnover of €50 million or less (or €43 million or less on its balance sheet);
Are independent and autonomous (i.e. not part of a wider group of enterprises);
Have less than 25% of their capital held by public bodies;
Are established and operating in the Republic of Ireland.

A ‘Small Mid-Cap’ is an enterprise that is not an SME, but has fewer than 500 employees.

Relevant businesses must also satisfy one of both a selection of ‘Brexit’ and ‘Innovation’ criteria to be eligible. For more information on the criteria and to apply, interested parties can find out more on the SBCI’s website.