Ó An Roinn Fiontar, Trádála agus Fostaíochta
Foilsithe
An t-eolas is déanaí
Teanga: Níl leagan Gaeilge den mhír seo ar fáil.
The Minister for Business, Enterprise and Innovation, Heather Humphreys TD, has published the Microenterprise Loan Fund Amendment Bill 2020.
The Bill, which was approved by Government on Friday, will significantly beef up Microfinance Ireland, which provides low cost COVID-19 loans to our smallest businesses. It will enable a significant expansion of the Future Growth Loan Scheme, which has proven extremely popular among SMEs. The Acts amended will be the Microenterprise Loan Fund Act 2012 and the European Investment Fund Act 2018.
The legislation will underpin a major expansion of the Microfinance COVID-19 Loan Fund which was launched on 23 March 2020. Loans of up to €50,000 are currently available through Microfinance Ireland (MFI) with a six-month interest free and repayment free period.
In the two months since the launch of the MFI COVID-19 Loan Fund at the end of March, €11 million in lending has been approved to almost 400 small businesses across the country. This is almost double the total loans of €6 million approved by MFI for the whole of last year.
The legislation will:
Minister Humphreys said:
"The Microfinance Ireland Loan Fund has been a vital support for small businesses across the country. Demand has been exceptionally strong to date with almost 400 loans already approved for small businesses under the scheme. This represents a 600% increase on their normal activity levels. I expect demand to increase further as more businesses begin their reboot. I have brought this legislation to Government today to make sure that I can continue to support small businesses with this funding for as long as they need it."
Microfinance Ireland (MFI) loans are a key component in the wider suite of supports being offered by the government for businesses affected by the COVID-19 pandemic. They have a higher risk appetite than traditional financial providers and have assisted businesses across all sectors and throughout every region in Ireland.
The Future Growth Loan Scheme, which was launched in 2019, provides loans of up to €3 million with terms of up to 10 years to SMEs including farmers and fishers. There has been a rapid uptake of this €300 million scheme by SMEs with a broad reach across all sectors and regions ranging from exporting businesses to local family businesses.
The government recently announced that an additional €200 million in lending would be made available through the Future Growth Loan Scheme. Following further negotiations with the EIB Group, agreement has been secured to increase the ceiling of additional lending from €200 million to €500 million, thus enabling a much greater number of businesses to be supported.
An amendment to the legislation which underpins the scheme is necessary in order to secure the additional €500 million in lending through the scheme.
Minister Humphreys said:
"The Future Growth Loan Scheme provides long term loans of 8-10 years to businesses at low interest rates. There has been huge demand for the scheme and this €500 million expansion will allow us to further support the needs of SMEs including primary producers, impacted by COVID-19. The long-term nature of these loans is particularly important for businesses as they plan for recovery.
"The expansion of the Microfinance COVID-19 Loan Fund together with the €500 million Future Growth Loan Scheme will provide further liquidity to SMEs as they work to reopen their doors and get back on their feet.
"Every effort has been made by my department to get this legislation drafted and published as quickly as possible. The legislation is now ready-to-go and I hope that it can be enacted as quickly as possible once a new government is formed so that businesses can get access to this vital liquidity."
Minister for Agriculture, Food and the Marine, Michael Creed TD, said:
"The government is conscious of the challenges that are being faced by all businesses, including those in the agri-food sector. Our farmers, fishers and food companies are playing a vital role during the current pandemic, keeping quality nutritious food supplied to all our customers, both in Ireland and internationally.
"The agri-food sector, encompassing all the many aspects of agriculture, seafood and forestry, play a vital role in our economy, and are especially important in rural and coastal areas. Access to finance is vital, not only to get through the current crisis, but also to adapt and develop in the recovery phase.
"Small enterprises, including farmers, fishers and small food companies are eligible for Microfinance Ireland’s COVID-19 Business Loan and in light of strong and anticipated demand for this working capital facility, the extra capacity being announced today is necessary and welcome.
"The Future Growth Loan Scheme, co-funded by my department with up to 40% available to the agri-food sector, was in high demand before the current crisis, providing 10-year investment finance that was previously unavailable in Ireland. We had been planning a second tranche before COVID-19; the pandemic has made the provision of this forward-looking Scheme all the more important and it will play an important part in our recovery. I am delighted that we are able to announce this milestone in our negotiations with the EIB Group on the further €500 million expansion of the Scheme."
ENDS
The Department of Business, Enterprise and Innovation (DBEI) plays a key role in implementing the government’s policies of stimulating the productive capacity of the economy and creating an environment which supports job creation and maintenance. The department has lead responsibility for Irish policy on global trade and inward investment and a remit to promote fair competition in the marketplace, protect consumers and safeguard workers.
For further information, members of the media can contact Press Office, D/Business, Enterprise and Innovation, press.office@dbei.gov.ie or (01) 631 2200.
If you no longer wish to receive emails from the Department of Business Enterprise and Innovation Press Office, please notify us by email to press.office@dbei.gov.ie
The Department of Business, Enterprise and Innovation has established a Support Call Centre for information on the business supports available to those affected by COVID-19. It can be reached at infobusinesssupport@dbei.gov.ie or (01) 631 2002.
A comprehensive listing of supports, grants, and advice available to businesses affected by COVID-19 is available at dbei.gov.ie/coronavirus.