Can I still borrow money through a low cost COVID-19 Loan Scheme?

Many small businesses continue to deal with the economic effects of the COVID-19 pandemic and still need support.

This week the government launched the COVID-19 Loan Scheme (CLS). This is a state-backed loan scheme, offering SMEs (including farmers, fishers, and food businesses) loans of between €25,000 and up to €1,500,000, with terms of 1 to 6 years and unsecured up to €500,000.

Finance provided is competitively priced and some refinance can be availed of to help with any existing short-term credit a business may have.

Interest rates vary, but are capped at an initial maximum rate of 3.7% for loans less than €250,000 and 2.75% for loans of €250,000 and above. If you go directly to a bank, SMEs would typically pay circa 7% for a business loan.  

The Scheme is operated by the Strategic Banking Corporation of Ireland (SBCI) through participating lenders. Visit their website for more information on the application process: www.sbci.gov.ie

Loans are available up to 31 December 2022 or until the scheme has been fully subscribed.

The new CLS replaces the COVID-19 Credit Guarantee Scheme that ceased at the end of June 2022.

 

 

Date published 5 Jul 2022

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