Humphreys defends low take-up of Brexit loans

ENTERPRISE minister Heather Humphreys has said that she is not concerned about the low uptake by businesses of a special €300m Brexit loan facility.

Just €15m has been loaned in the year since it was launched. But the minister told the

Sunday Independent she is concerned about Irish firms that have not yet engaged with Brexit, “the ones who are thinking this isn’t going to happen or that it’s going to go away”.

“I’d be worried if it [the €300m fund] was all going out the door very quickly. I’d say then that there is something wrong,” she said.

“I think companies are not sure what is going to happen but what I would say to them is make the application, get the loan in place, you don’t have to draw it down, but it’s there in case you need it. It’s a very good loan scheme at a very competitive rate.

“I would imagine you will find a bigger uptake as we get closer to the end of March.”

The scheme is aimed at providing a boost in working capital for companies impacted by Brexit. A second, longer term €300m scheme for capital investment is to be launched next month.

“I meet with business representative groups all the time and no one is coming to me and saying there is a problem with this loan,” she said.

“If there is a problem I want to hear about it. I think right now people are just looking at what there financial needs are.

“Because of the concern over Brexit a lot of people are not investing and they are probably reluctant to borrow and I can understand that.”