Accessing Government Funding Supports - COVID-19 COVID-19
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Accessing Government Funding Supports
Updated May 5, 2020
Government
Funding
Supports
Supports COVID-19 SME Credit Local Enterprise
Future Growth COVID-19
Announced May Working Capital Guarantee Office (LEO)
Scheme Business Loan
2, 2020 Loan Scheme Scheme SupportsSupport/Funding Overview Additional Information
Additional On May 2, 2020 the Government announced a number of additional
Supports measures to aid the economy as the COVID-19 restrictions start to be
announced May lifted. Those measures are: Announcement and full details on all proposed
2, 2020 initiatives can be found here
• a €10,000 restart grant for micro and small businesses based
on a rates/waiver rebate from 2019
• a three-month commercial rates waiver for impacted
businesses
• a €2 billion Pandemic Stabilisation and Recovery Fund within
the Ireland Strategic Investment Fund (ISIF), which will make
capital available to medium and large enterprises
• a €2 billion COVID-19 Credit Guarantee Scheme to support
lending to SMEs for terms ranging from 3 months to 6 years,
which will be below market interest rates
• the ‘warehousing’ of tax liabilities for a period of twelve
months after recommencement of trading during which time
there will be no debt enforcement action taken by Revenue
• a commitment to local authorities to make up the rates
shortfall, so that local authorities can continue provide full
services to the publicOverview of Loan Scheme Features
Fund Details COVID-19 Working Future Growth Scheme SME Credit Guarantee COVID-19 Business Loan
Capital Loan Scheme Scheme
Government Body SBCI SBCI DBEI Microfinance Ireland (MI)
Fund Allocation €450m €200m €150m €20m
Where to Apply? SBCI for Eligibility & then SBCI for Eligibility & then Directly to Bank LEO or MI Directly
to Bank to Bank
Participants AIB, BOI & Ulster Bank AIB, BOI & Ulster Bank AIB, BOI & Ulster Bank MI
Loan Amount €25k to €1.5m €100k-€3m €10k to €1m €5k to €50k
Interest Rate Max 4% Maximum rate of 4.5% SME Lending rates (Plus 4.5% or 5.5% dependant
0.5%) on access point
Other Terms Interest only option may TBC No repayments first 6
be available for 1st year months
Guaranteed EU Gt/€500,000 EU Gt/ €500,000 80% (partially cover by rate Unsecured
Amount/Security Unsecured Unsecured premium)
Repayment (Years) 1-3 Up to 10 Up to 7 Up to 3
Specific Eligibility - 500 Employees & Less TBC - Sole traders, partnership, - Any businessSupport/Funding Overview Comments Additional Information
COVID-19 A €450m Strategic Banking Scheme opened March 23, 2020 Full details of the COVID-19 Working Capital
Working Capital Corporation of Ireland (SBCI) and loans will be available through Loan Scheme are available here
Loan Scheme Working Capital scheme for AIB, Bank of Ireland and Ulster
eligible businesses impacted Bank. The SBCI website will be updated on a regular basis
by COVID-19. Eligibility Criteria -Turnover / regarding the scheme, please check for the latest
profitability being negatively updates https://sbci.gov.ie/
Loans of up to €1.5m will be impacted by a minimum of 15%
available at reduced rates due to COVID-19. Option 1 in
(the maximum interest rate Innovation criteria is the most Please note that an up to date business plan will be
will be 4%), with up to the relevant criteria for tourism required to be provided to the finance provider(s)
first €500,000 unsecured. businesses. in all cases when applying for a loan.
Optional interest-only repayments
may be available at the start of the
loans. Loan terms range from 1- 3
years.
Future Growth Additional €200m funding Details are currently being worked The SBCI website will be updated on a regular basis
Scheme has been allocated by the on and further details will follow. regarding the scheme, please check for the latest
Government for a Future The scheme will be released in updates https://sbci.gov.ie/
Growth Scheme. tranches, to provide longer-term
loans to COVID-19 impacted Please note that an up to date business plan will be
businesses. required to be provided to the finance provider(s)
in all cases when applying for a loan.
How to access The first step in the process will be to complete an SBCI online application and receive eligibility letter. Once the eligibility
support letter is received, the business can then approach their preferred bank to begin the loan process.
Approval of loans are subject to the banks own credit policies and procedures and the loan amount and term is dependent
on the loan purpose.Support/Funding Overview Comments Additional Information
SME Credit This will be available to The scheme operates by providing
Guarantee COVID-19 impacted firms an 80% guarantee to participating For all information please click here
Scheme through the Pillar Banks finance providers (currently AIB,
(AIB, Bank of Ireland and Bank of Ireland and Ulster Bank) on
Ulster Bank). qualifying loans to SMEs.
Loan facilities of up to €1m Minimum loan is €10,000. Loan
will be available at terms of facilities can be term loans, demand
up to 7 years. loans or performance bonds.
The Scheme aims to assist
viable SMEs, which under
normal lending criteria are
unable to borrow from their
bank, in accessing credit.
How to access
support There is no eligibility process on the Credit Guarantee Scheme.
Businesses should approach their banks about the scheme and then the banks take it from there.Support/Funding Overview Comments Additional Information
COVID-19 The maximum loan available Eligibility criteria include:
Business Loan from Microfinance Ireland has For scheme details please click here
Scheme increased from €25,000 to 1. A minimum of 15% of actual
€50,000, minimum is €5000. or projected turnover or
profit in the business is To register your details to receive an
Eligible micro-enterprises negatively impacted by Application Pack click here
(businesses with less than 10 COVID-19
FTEs and up to €2m annual 2. The business is a micro- To access FAQ on Covid-19 Business Loan
turnover) that are currently enterprise please click here
trading. 3. The business is having
difficulty in accessing finance
Loans may be used for from Banks and/or other
working capital and required commercial lending
business changes as a result providers.
of COVID-19.
There are two interest rates.
Loan terms typically last up Applications through the LEO can
to 3 years and are interest avail of a discounted rate of 4.5%
and repayment free for the APR. Applications directly to MFI are
first 6 months. at a rate of 5.5%
How to access Talk to a Business Advisor in your Local Enterprise Office. Register on website at microfinanceIreland.ie or talk to a loan
support advisor on 01 260 1007.
Documents Required to apply include: Application Form, COVID 19 Business Plan, Cashflow Forecast, 6 Months Bank
Statements, Central Credit Register Report (CCR). Other information may be required based on loan amount.Support/Funding Overview Comments Additional Information
Support Through Following a meeting on March 1. Payment break on loans up to For additional information on how the banks will
Pillar Banks 18 2020, between three months for business affected work with your business visit the Banking and
representatives of the pillar by Covid-19, to be followed by Payments Federation of Ireland’s FAQ page.
banks, AIB, Bank of Ireland, ongoing reviews depending on the
KBC, Permanent TSB and scale and extent of the situation. Businesses wishing to avail of a payment break
Ulster Bank, the Banking and should contact their respective bank. All businesses
Payments Federation and 2. Simplified application process are being encouraged to engage with their bank to
Minister for Finance Paschal to make it as easy as possible for agree financing needs over the coming period and
Donohoe five key measures businesses and personal customers restructure as appropriate.
have been introduced. impacted by Covid-19 to receive
support from their banks. Bank Options include:
Banks are adopting a • Debt moratoriums
customer focussed approach 3. Banks want to ensure that Covid- • Short Term Loans
with a wide variety of tailored 19 payment breaks will not • Working Capital Solutions
supports including extensions adversely impact the customer's • Trade Finance Solutions
of credit lines, risk credit record, and the banks • Forbearance Requests
guarantees, and trade reporting of these facilities.
finance. Overdraft Facility - This is for short-term funding
4. Banks will defer court in times of certainty i.e. you know cashflows will
proceedings for three months. return to normal in a few weeks. It can be
expensive, and banks can call repayment at any
time. Examine other loan options and bank
5. The banking system stands ready
supports which may be more suitable for your
to provide working capital
business in the current situation and ongoing
support.
uncertainty.
Access our quick guide to improving liquidity and
working capital hereSupport/Funding Overview Comments Additional Information
Supports through On April 8, 2020 the Local Enterprise Offices in every Click here to get further information and to
the Local Government announced county provide a range of supports contact your Local Enterprise Office.
Enterprise Offices additional funding for various for micro-enterprises connected to
funding and supports delivered the COVID-19 outbreak.
through the Local Enterprise Contact your Local Enterprise
Office network. Office for additional information.You can also read
