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 2022This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
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