Future Growth Loan Scheme allocated €200 million of Covid-19 funding

The Future Growth Loan Scheme (FGLS) has received a boost of €200 million in Covid-19 funding from the Department of Business Enterprise and Innovation.

The move was revealed when Minister for Business, Enterprise and Innovation, Heather Humphreys announced a major expansion of supports for all businesses impacted by Covid-19 yesterday, Wednesday, April 8.

Minister Humphreys said that an additional €450 million of lending will be provided through the Strategic Banking Corporation of Ireland (SBCI) for small and medium-sized enterprises (SMEs) in all sectors including agri-food.

Comprised of two parts, this will provide much-needed liquidity for firms and bring total SBCI Covid-19 lending capacity up to €650 million with loans available through the pillar banks, the minister said.

FGLS boost

The extra €200 million for the Future Growth Loan Scheme will be released in tranches, to provide longer-term loans to Covid-19 impacted businesses.

Loan amounts will range €100,000 to a maximum of €3 million per applicant. Loan terms range from eight to 10 years and loans of up to €500,000 can be unsecured.

Interest-only repayments may be available at the start of the loans. The maximum interest rate will be 4.5%.

This will see the FGLS – which was previously effectively full for farmer applicants back in February – open once more for farmers.

Covid-19 Working Capital Loan Scheme

Meanwhile, the €200 million SBCI Covid-19 Working Capital Loan Scheme will increase by €250 million to €450 million, the Department of Business said.

The scheme is providing essential liquidity support to businesses with over 1,400 applications received by the SBCI so far, it was added.

Loans can be between €25,000 and €1.5 million at a maximum interest rate of 4%. Loan terms range from one year to three years and loans can be unsecured up to €500,000. Interest-only repayments may be available at the start of the loans.