Key Features
The scheme is to support eligible SMEs by offering lower cost finance. Capitalflow offers this scheme to customers wishing to finance assets either through Hire Purchase or Leases. This is available to businesses who have been impacted by the conflict in Ukraine.
Finance is available from €10,000 to a maximum of €1,000,000 per borrower. Repayment terms of between 3 months up to 6 years.
Capitalflow UCGS products include reduced fixed rate Hire Purchase and Leases for a broad range of asset classes and industry sectors.
The risk premium rate is paid by the borrower and added to the payment schedule from Capitalflow. The amount depends on the size of the business and length of time for which the credit is being advanced. Full table in FAQs below.
Finance is limited to €1m under the scheme and is subject to a cap which is the greater of either 15% of the borrower's average total annual turnover over the last three accounting periods or 50% of the borrower's energy costs over the 12 months preceding the month when the application is made.
The scheme will be available up to the 31st December 2024 or until the scheme has been fully subscribed.
Who Can Apply
The Ukraine Credit Guarantee Scheme (UCGS) is suitable for:
- has fewer than 250 employees
- has a turnover of €50 million or less (or €43 million or less on their balance sheet)
- is independent and autonomous i.e. not part of a wider group of enterprises
- has less than 25% of their capital held by public bodies
- in order to be eligible for funding, businesses must be both established and opertating in the Republic of Ireland.
- Small Mid-Cap is defined as an enterprise which employs between 251 and 500 employees.
- A person who is engaged in primary production which is the production, rearing or growing of primary products including harvesting, milking and farmed animal production prior to slaughter.
- It also includes hunting and fishing and the harvesting of wild products.
- A sole trader is a self-employed person who owns and runs their own business as an individual. A sole trader business doesn't have any legal identity separate to its owner. That leads many to say that as a sole trader you are the business.
How To Apply
Follow this simple 2 step application process:
Are you eligible?
Applicants must register on the SBCI Hub and submit an online Eligibility Application Form to check if they can access the scheme. Once the online form is completed, successful applicants will be issued with an eligibility code.
Start Application
You can apply for Capitalflow UCGS funding by getting your quote with us here.
We will need your eligibility code to process your application fully which is available through the SBCI Hub.
Approval of finance is subject to Capitalflows credit criteria, policies and procedures. The Ukraine Credit Guarantee Scheme will operate until 31 December 2024 or until the scheme has been fully subscribed.
Email hello@capitalflow.ie for further information
Typical Example
Typical Example:
UCGS is offered on Business Hire Purchase or Business Lease Agreement. Lending terms and conditions apply. Applicants must be an SME and must have an SBCI Eligibility Code.
Example: New / Used Assets: Typical APR 9.9% Fixed (subject to change) – Before UCGS/SBCI Financial Discount of 25%. Typical APR 7.4% after UCGS/SBCI Financial Discount.
Cash Price €80,000 Deposit / Trade In €8,000. Finance Amount €72,000. 60 Monthly Instalments of €1,509.04 (before UCGS-SBCI Financial Discount); 60 Monthly Instalments of €1,427.69 (after UCGS-SBCI Financial Discount). The UCGS-SBCI Finance Discount per month is €81.35. Documentation Fee of €250 and Completion Fee of €250 applies. In addition to the Monthly Instalment, there is a Premium Fee collected on behalf of DETE of €21.96, as the cost for providing the guarantee by DETE on this example (this amount will vary depending on the Finance Amount and Term of the facility and is fixed for the term). A minimum deposit of 10% may be required. (For any finance amount less than €10,000 or any term shorter than 36 months, the Typical APR may vary – please go to our loan calculator or contact our team on 01-5632400 for a quote)
Frequently Asked Questions
Capitalflow provides facilities from €10,000 up to €1 million under the scheme.
Capitalflow provides Asset Finance under the Ukraine Credit Guarantee Scheme in the form of Hire Purchase or Leasing facilities.
No. This scheme does not allow for the refinancing of existing facilities.
Yes you can – provided that the total finance amount does not exceed the maximum amount available to you under the Scheme.
The SBCI eligibility code you get for your first finance application can be used more than once up to 6 months.
For subsequent finance applications, you must complete a new eligibility application form and get a new SBCI eligibility code.
The SBCI eligibility code is valid for six months from the date of issue, but it is always subject to the scheme remaining open and having funding available.
Facilities can be for terms of up to six years in duration.
Yes there is – you can borrow up to €1m cumulatively under the scheme.
But this limit is subject to a cap which is the greater of
15% of the borrower’s average total annual turnover over the last three closed accounting periods;
Or
50% of the borrower’s energy costs over the 12 months preceding the month when the application for aid is submitted.
The Ukraine Credit Guarantee scheme is designed for SME’s and Mid Cap businesses, including primary producers (businesses engaged in farming and fishing), registered and operating in Ireland.
A primary producer is a person engaged in the production, rearing or growing of primary products including harvesting, milking and farmed animal production. It also includes fishing and the harvesting of wild products.
No. The Ukraine Credit Guarantee Scheme does not allow for the purchase of agri land.
Not all sectors are eligible to participate in the scheme
A full list of sectors which are eligible and ineligible for the scheme is available on the SBCI website.
Road freight transport vehicles are not financed under the Ukraine Credit Guarantee Scheme.
It means that the applicant operates their business and has registered business address in Ireland.
It stands for the “Statistical Classification of Economic Activities in the European Community”. It is the standard system used in the European Union for classifying business activity. NACE codes are divided into sectors such as retail, manufacturing, services etc.
The list of NACE Codes eligible for the Ukraine Credit Guarantee Scheme is available on the SBCI website.
Approval depends on the finance amount involved and if we have all the information needed to process an application. Once you have your eligibility code, just log onto our website and get your instant quote.
The risk premium rate is paid by the borrower and added to your payment schedule from Capitalflow. The amount depends on the size of the business and the length of time for which the credit is being advanced, as per the tables below:
SMEs
| Terms of Loan
(Years) |
Rate
(%) |
| 1-3 years | 0.29 |
| 4-6 years | 0.68 |
Small Mid-Caps
| Terms of Loan
(Years) |
Rate
(%) |
| 1-3 years | 0.73 |
| 4-6 years | 1.55 |
Hire Purchase and Lease agreements secured against the asset being financed. Facilities greater than €250,000 may require additional security.
This risk premium represents the cost to the Government in providing the 80% guarantee scheme to Capitalflow.
The provision of funding for the Ukraine Credit Guarantee Scheme is initially being made under the EU Commission Temporary Crisis Framework and may in certain circumstances be made available under separate State aid rules.
Where you have received State aid, you will have received a letter from the State body that provided it. Examples of State aid granting bodies include Enterprise Ireland, Bord Bia or the Local Enterprise Office.
Warning: You will not own these goods until the final payment is made.
Warning: You may have to pay charges if you pay off a hire purchase agreement or consumer hire agreement early.
Warning: If you do not meet the repayments on your hire purchase agreement or consumer hire agreement, your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit, a hire purchase agreement, a consumer hire agreement or a BNPL agreement in the future.
