New Credit Guarantee Scheme to give SMEs better access to finance

The Department of Business, Enterprise and Innovation has launched its new Credit Guarantee Scheme, designed to help commercially viable small firms struggling to obtain finance through traditional means.

Ulster Bank is the country’s first financial institution to confirm it is open for applications to the scheme from entrepreneurs.

Eddie Cullen, Managing Director, Ulster Bank’s Commercial Banking Division, said: “Ulster Bank is delighted to be the first bank to offer the new Credit Guarantee Scheme as part of a number of supports to business customers.

“It’s particularly important because it is specifically designed for SMEs that may be finding it hard to access finance.”

Under the expanded scheme, the Government has confirmed it will assume a greater share of the risk, accepting up to 80% of individual loans. This will make the scheme more appealing to innovative lenders happy to provide advance loans to ambitious small and medium-sized enterprises throughout Ireland.

The initial Credit Guarantee Scheme was launched back in 2012. Since its inception, some €88m in bank loans have been dished out to over 560 small businesses. These loans have aided growing firms with the acquisition of essential equipment or premises, accelerated product and service developments and provided much-needed working capital.

Pat Breen T.D., Minister of State, Department of Business Enterprise and Innovation, said: “The previous Credit Guarantee Scheme has been very successful with 560 facilities totalling €88.8 million sanctioned since it was launched in 2012, supporting 3,519 jobs.

“The new scheme has been expanded to provide even greater support for Irish SMEs to sustain and grow their businesses and increase the number of job opportunities across the country.

“This move is a vote of confidence by Government in our SMEs, in particular those with novel products and approaches and those somewhat lacking in traditional collateral, and their ability to grow both their businesses and employment levels.”

Mr Breen confirmed his intentions to work in close liaison with the Strategic Banking Corporation of Ireland (SBCI), Ireland’s leading banks and alternative finance providers to ensure substantial SME take-up in this new form of funding.

To find out whether your business is eligible for the revamped Credit Guarantee Scheme and how to apply, visit the SBCI’s comprehensive guide here.

Date published 4 May 2018 | Last updated 4 May 2018