14th July 2024
Minister for Enterprise, Trade and Employment, Peter Burke, TD, has met with the heads of each of the three pillar banks - AIB, Bank of Ireland and Permanent TSB to discuss their engagement with the SME sector.
Minister Burke said:
“Since my appointment I have made it my top priority to support the small and medium sized businesses that are the backbone of Ireland’s economy. I was therefore pleased to meet with CEOs from the three main banks in order to get their assessment of the challenges that are facing small business owners given their everyday engagement with those owners and their knowledge of trends across various sectors and regions. I also urged them to continue to support our SME sector.
“These three banks are also participating lenders in Government supported Loan Schemes such as the Ukraine Credit Guarantee Scheme and the Growth and Sustainability Loan Scheme, which were developed in my Department in cooperation with the Department of Agriculture, Food and the Marine. The meetings were also a useful opportunity for me to get an update on the roll out and take up of those Schemes and I was glad to hear from all three banks that the response has been positive so far.
“Earlier this week I launched our National Enterprise Hub which outlines 180 supports that are available to businesses, many of which involve our banking system. I am keen to examine all avenues that will lead to better outcomes for businesses and for our economy.
“I believe it is important to consult widely, not just directly with small and medium sized businesses, but also with those who provide essential services to them. As Minister, it is important that I have a comprehensive a picture of every sector, the challenges that are specific to some, and the issues that face them all, especially ahead of budget negotiations.”
ENDS
Notes to Editors:
Minister Burke met with Mr Colin Hunt, CEO of AIB, Mr. Gavin Kelly, CEO of Corporate and Commercial Banking, Bank of Ireland and Mr Eamonn Crowley, CEO of Permanent TSB in three meetings over the course of June and July 2024.
These meetings were introductory, following Minister Burke’s appointment as Minister for Enterprise, Trade and Employment. The Minister also sought the banks’ insights into the challenges facing small and medium sized enterprises across sectors and asked for an update on the take up by those enterprises of the Ukraine Credit Guarantee Scheme and the Growth and Sustainability Loan Scheme.
Ukraine Credit Guarantee Scheme (UCGS)
The UCGS was developed to assist businesses impacted by cost increases arising from the conflict in Ukraine. Loans of up to €1million are available from participating financial providers, which includes banks, non-bank providers and credit unions. AIB and Bank of Ireland both participate in this Scheme.
The scheme is open to lending until 31 December 2024 and is operated by the Strategic Banking Corporation of Ireland on behalf of both the Department of Enterprise, Trade and Employment and the Department of Agriculture, Food and the Marine.
Key features of the Scheme:
- €1.2 billion in loans is available to SMEs and Small Mid-Caps for working capital and investment purposes.
- Loans of up to 6 years are available, from €10,000 to €1 million, with no collateral required for loans up to €250,000.
Growth and Sustainability Loan Scheme (GSLS)
The €500 million GSLS provides longer-term lending to SMEs, including farmers and fishers and small mid-caps. Loans of between €25,000 and €3 million, with terms of up to 10 years and attractive terms and conditions, are available through the scheme to eligible SMEs through participating finance providers, with loans of up to €500,000 available unsecured.
The scheme targets a minimum of 30% of the lending volume towards environmental sustainability purposes with the aim of encouraging SMEs to take positive actions in support of the climate change agenda. Loans for climate action and environmental sustainability purposes will also benefit from an additional interest rate discount.
Up to 70% of lending will be for strategic investments with a view to increasing productivity and competitiveness and thus underpinning future business sustainability and growth.
AIB, Bank of Ireland and Permanent TSB all participate in this Scheme.
