Press Statement Monday 23rd November 2020
From: Kieran O’Donnell TD
O’Donnell Welcomes New Brexit Loan Scheme for Small Businesses
- Up to €25,000 Loan Available, over 6 months to 3 years durations
Limerick Fine Gael TD, Kieran O’Donnell welcomed today’s launch by Tanaiste Leo Varadkar TD of a new Brexit loan scheme to help small businesses prepare for Britain’s exit from the single market and customs union at the end of this year. The new Microfinance Ireland (MFI) Brexit Business Loan, will provide up to €25,000 to businesses whose turnover already is or is likely to fall 15% or more or if the business has a short term cashflow need as a result of Brexit. Loans are available for between six months and three years duration.
“I welcome today’s announcement by Tanaiste Leo Varadkar of a new Microfinance Ireland (MFI) Brexit Business loan scheme to help small business prepare for Britain’s exit from the single market and customs union on 1st January next. The loan scheme will provide loans of up to €25,000 to businesses, whose turnover Is up to €2m, employing less than 10 people and whose turnover is or is likely to fall by 15% or more or if the business has a short term cashflow due to Brexit.
“Businesses can apply for the Brexit loan directly to MFI, through their local Enterprise Office(LEO) or other referral partners.
“The main features of this MFI Brexit Loan Scheme for Small Businesses are:
- Loans from €5,000 – €25,000*
- Loan Terms from six months to three years** (shorter terms depending on purpose)
- Interest rate of 4.5% APR if submitted through the Local Enterprise Office Network or other referral partners, or 5.5% APR if you apply directly
- No fees/charges or any hidden costs
- Fixed repayments with no penalty for early repayment
* The maximum credit exposure for all MFI borrowings is €25,000
**Depending on the term of the loan, interest only repayments for three months may apply in line with our standard products
Who can apply?
- Any business* (Sole Trader, Partnership or Limited Company) with less than 10 employees and annual turnover of up to €2m
- Unable to secure finance from a Bank or commercial lending provider
- Business turnover is or potentially could be impacted by a minimum of 15% or the business has a short term cashflow need as a result of Brexit.
* While Businesses involved in Alcohol Production are deemed to be an excluded sector for MFI Loans, they are eligible to apply for an MFI Brexit Loans