The Strategic Banking Corporation of Ireland (SBCI) is seeking expressions of interest from financial institutions, including banks, to distribute the €300m Brexit Loan Scheme, An Tánaiste and Minister for Business Frances Fitzgerald and Minister for Agriculture Michael Creed announced last Friday.

Using a €23m allocation in next year’s budget, the Government will apply interest rates of 4% or less to the loans, which the ministers said represents a significant saving compared with commercial rates for similar loans.

Small and medium enterprises (up to 499 employees) will be able to borrow between €25,000 and €1.5m each for up to three years. The loans must fund working capital or cash flow needs and applicants will need to show the business is vulnerable due to Brexit and has a business plan to adapt to the challenges it poses.

The scheme is due to open in March 2018 for two years.

Fresh loans for farmers next year

“Given their unique exposure to the UK market, my department’s funding ensures that at least 40% of the fund will be available to food businesses,” Minister Creed said.

“The very successful ‘Agriculture Cashflow Loan Scheme’ has provided a template for this new scheme,” Minister Creed said in reference to the €150m loan fund made available to farmers earlier this year.

“I look forward to the development of further Brexit response loan schemes for farmers, fishermen and food businesses over the next year,” he added. Another €25m in Exchequer funds is earmarked for this in the budget.

An Tánaiste said that her department was also “exploring the development of a longer-term scheme to allow businesses to invest in a more strategic manner, so that they can position themselves for a post-Brexit environment”.

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