A new Covid-19 Credit Guarantee Scheme for 2020 will be released this Autumn, with over €2 billion in credit available.
This will enable small to medium sized businesses to access overdrafts, term loans and working capital with payment free periods from six months to a year and terms of up to 7 years.
The aim is to provide low-cost loans to businesses severely affected by Covid-19 and to help the economy re-open, with the government offering a partial guarantee of 80% to the banks against losses on those qualifying loans.
Minister Leo Vradkar said;
“We want to help viable businesses to get through the difficult phase of reopening and deal with the new realities and challenges posed by COVID-19. The Credit Guarantee Scheme will provide low cost loans to businesses and will in turn help more people to get back to work, We want to give confidence to SMEs in particular, by providing the liquidity needed to get through the economic upheaval caused by the pandemic.
The July Stimulus Package will be the next step in our recovery plan as we seek to get businesses back on their feet and our people back to work.”
It will be operated through participating lenders, which are Ulster Bank, AIB and Bank of Ireland.
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