The Government has just launched a Covid-19 low cost loan scheme (CLS) for small and medium businesses including farmers, fishermen and food businesses.
The CLS replaces the Covid-19 Credit Guarantee Scheme (CCGS) which closed at the end of June 2022.
Loans of between €25,000 and €1.5 million will be available over one to six years and up to 30% of these loans may be allowed for refinancing of existing short-term credit.
Credit will be available without security where the loan amount is less than €500,000 and will cost less than other comparable lending.
To qualify for a loan a business must have experienced a decrease of a minimum of 15% in turnover or profit due to Covid.
The scheme is operated by the Strategic Banking Corporation of Ireland (SBCI) through participating lenders.
Application process
The CLS features a two-stage application process:
- Applications for eligibility will be made via the SBCI website which will assess applications and those successful will be issued an eligibility reference number.
- Apply for a loan with one of the participating finance providers using the eligibility reference number.
Once issued an eligibility reference number is active for six months but applicants are encouraged to apply for loans as soon as possible.