Government Launches Further Low cost COVID-19 Loan Scheme to Help Businesses

Covid loan

Government Launches Further Low cost COVID-19 Loan Scheme to Help Businesses

The Government today announced a further loan scheme to help SMEs access low-cost finance, recognising that many of them are still getting back on their feet after what has been an incredibly challenging few years.

The COVID-19 Loan Scheme (‘CLS’) is a state-backed loan scheme, offering SMEs, including farmers, fishers, food businesses and small mid-caps, loans of between €25,000 and up to €1,500,000, with terms of one to six 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.

Loan features

Loans under the scheme:

  • range from €25,000 to €1.5 million
  • are available for terms of one to six years
  • are available without security where the loan amount is less than €500,000
  • typically feature a lower interest rate than other comparable lending in the market
Loans can be used for:
  • liquidity/Working capital
  • investment
  • refinancing: up to 30% of new loans may be allowed for refinancing of existing short-term credit, for example, as arising due to COVID-19 impacts

 Businesses eligible for the scheme:

  • this Scheme is available to eligible SME and small Mid-Cap businesses, including primary producers (businesses engaged in farming and fishing), established in Ireland
  • a business must also have experienced an adverse impact of a minimum 15% in turnover or profit due to the impact of COVID-19
Interest rates

Interest rates on loans provided under the Scheme will be lower than is otherwise typically available on similar lending in the market and will vary according to the lender.

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