Since Capitalflow launched its Credit Guarantee Scheme, according to the Department of Business, Enterprise and Innovation, the value of loans drawn down under the state’s Credit Guarantee Scheme has exceeded €150 million. This is in stark contrast with last year’s low uptake.
Launched in September 2020, the government-backed Covid-19 Credit Guarantee Scheme provides low-cost loans to Irish businesses dealing with the impact of the global pandemic.
Although the original deadline to apply was 31 December 2020, this has now been extended to 30 June 2021 and through it, and in partnership with the Strategic Banking Corporate of Ireland (SBCI), Capitalflow is offering Hire Purchase and Leasing to eligible SMEs.
According to Ian Guider in the Sunday Business Post, some €156 million of the €2 billion allocated to the scheme, in which the state absorbs any losses of up to 80 per cent on loans, has been drawn down by 2,788 companies. A breakdown of the data shows that firms in Dublin account for some €45 million of total lending, with an average loan size of just over €70,000.
The data also shows that businesses in the wholesale and retail sector accounted for almost a fifth of loans by value, while accommodation and food and agriculture businesses each accounted for 13 per cent of loans by value.
With 80 per cent of potential losses absorbed by the state, terms of up to 5.5 years, and facilities from €10,000 to €1 million, this scheme is a real game changer for SME finance. To find out more contact our team on 01 563 2400 or go to capitalflow.ie/cgs