Tánaiste re-opens low cost loan scheme for microenterprises8 September 2020
The Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar TD, today announced that €15m is being made available to re-open the Covid-19 Loan Fund.
The Microfinance Ireland Covid-19 Loan scheme assists businesses with fewer than ten employees, which have been impacted negatively by Covid-19. It provides much-needed funding to help microenterprises meet payments for stock, working capital requirements and other overhead expenses through the provision of low-cost lending facilities, which include a six-month repayment free moratorium and the equivalent of one year interest free (subject to terms and conditions) with rates as low as 4.5% for the remaining period of the loan. See press release here.
The Tánaiste recently introduced the Microenterprise Loan Fund (Amendment) Bill to provide for the increased funding.
The Covid-19 Loan scheme has seen a very strong uptake in recent months, with €18.6 million sanctioned to 683 businesses up to 31 July 2020. This represents three years of normal lending volumes for MFI in a period of just over four months. Importantly, with 79% of MFI’s lending to businesses outside Dublin, MFI provides an essential support for businesses who are hoping to reboot their economic activity over the coming weeks and months in every county in Ireland.
Companies interested in applying or finding out more information can contact Microfinance Ireland here.