- Largest allocation of non-bank lenders under the CGS, with €31m government backed funding under the Credit Guarantee Scheme – package for HP & leasing for equipment, machinery and vehicles
- The Credit Guarantee Scheme will be available immediately to businesses affected by Covid
15th, January 2021: Capitalflow, Irish Specialist Business Lender, has been allocated an initial €31 million in low-cost Covid-19 Credit Guarantee Scheme (CGS) funding for SME’s, primary producers, and small mid-cap companies with employment of up to 499 people, that have been impacted by Covid-19. This is the largest allocation amongst non-bank lenders to date and is available from now until the end of June 2021.
The CGS is a financial solution, made available by the Department of Enterprise, Trade and Employment and operated by the Strategic Banking Corporation of Ireland (SBCI), that will see Capitalflow backing businesses to fuel the economic recovery, enabling them to adapt, preserve jobs and create future growth. As the largest Credit Guarantee Scheme in the history of the State, it enables Capitalflow to offer competitive funding to new and existing business customers.
CGS funds will be subject to the following rules:
- The guarantee scheme is aimed at helping businesses that have experienced an adverse impact of a minimum of 15% in actual or projected turnover or profit due to Covid-19, with funding amounts of €10,000 – €1,000,000.
- Total facilities may not exceed €1 million. Eligible funding under the scheme includes Equipment and Machinery Hire Purchase, Leasing and Refinance.
- No additional security will be required for loans up to €250,000 outside the normal criteria of Capitalflow.
- The amount businesses can borrow is based on 25% of their total 2019 business turnover or double their annual wage bill.
CEO of Capitalflow, Ronan Horgan, comments: “Covid-19 has had an enormously damaging impact on the Irish economy, particularly to small local businesses. We are delighted to be in a position to support these businesses with a very substantial allocation of low-cost credit through the Credit Guarantee Scheme. We believe this will ensure that these hugely important small businesses are adequately funded during the first half of 2021 to allow them to recover, adapt, preserve jobs and create future growth.”
Ronan Horgan adds, “While some businesses will be cautious about borrowing at this time, there is an underlying demand for credit which is set to increase in the second half of the year, when we expect business customers will have more confidence as the vaccine roll out continues.
At Capitalflow, we work with customers in an agile way through the ups and downs of business, to make a real impact and positive difference to their growth prospects. We have an experienced team nationwide with deep sectoral knowledge of how businesses operate who can make credit decisions quickly .”
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