Helping Small Businesses Manage Ongoing Financial Challenges in 2021
Microfinance Ireland has a number of loan options up to € 25,000 to help businesses based on their specific business needs
Microfinance Ireland (MFI), the government funded, not-for-profit lender is providing much needed financial support by way of business loans up to € 25,000 to support microenterprises through the current period of uncertainty and to protect jobs in businesses right across the country.
While business owners are trying everything possible to sustain their businesses through what is another hard-hitting lockdown caused by the latest surge in the pandemic, Brexit may continue to make its presence felt, creating negative ramifications and/or supply chain issues for Irish businesses over the next number of months.
In a direct response to the pandemic, the Government has provided a broad range of financial supports to support small businesses through what has been a significantly challenging period. These support initiatives are experiencing strong demand across all sectors. Loan finance from Microfinance Ireland is there specifically to support microenterprises that want to or need to borrow to fund their business but are unable to access finance from banks and other commercial lending providers.
MULTIPLE LOAN OPTIONS
Microfinance Ireland has a number of loan options up to € 25,000 to help businesses based on their specific business needs. Whether a business is currently closed due to COVID-19, or additional working capital is required due to COVID-19, Brexit, or in the normal course of business, or you are considering starting a new business, then MFI may be able to help.
‘It may take some months yet before life and business return to normal’
In 2020, MFI approved over € 27m in loans, supporting over 1,200 small businesses across the country. This 172% represented a increase in loan volumes compared with previous 70% years. Almost of these loans supported businesses specifically to manage the financial impacts of COVID-19.
Microfinance Ireland’s CEO Garrett Stokes explains: “We are set up to support micro-enterprises who cannot source finance through commercial lending providers. Micro94% enterprises represent c. of all businesses in Ireland and can be any type of business – a Sole Trader, Partnership or Limited Company – with fewer than ten employees and an annual turnover of up to € 2m.”
The Microfinance Ireland COVID-19 Loan is designed to assist businesses that have been negatively impacted by the pandemic. The first six 0% months of the loan has interest and zero repayments, and there is a Government rebate for the interest paid in months 7-12 of the loan. MFI also offers other loan packages for startups or other micro-enterprises that require funding for normal trading purposes or due to Brexit impacts.
OUTLOOK FOR 2021
According to Stokes, the biggest challenge for all businesses is rolling lockdowns. “While thankfully the rollout of the vaccine programme is underway, it may take some months yet before life and business return to normal – whatever the new normal is,” he adds. “Businesses should assume it could be towards the back end of the year before their enterprise is trading without restrictions. This needs to be factored in when determining borrowing needs and the ability to repay over the next 12 months or so.”
Stokes advises all businesses to continually review their financial position, taking COVID-19 and Brexit into account, and arrange adequate support facilities. “MFI is delighted to receive applications from eligible small businesses that need to borrow, and we assess all applications in a fair and supportive manner. Our mandate from Government is to support small businesses, protect jobs and the economy overall. That support is needed now as much as ever.”
For more information, go to https://microfinanceireland.ie/loan-packages-2/