Credit Guarantee Scheme to remain open until end of 2021

As of March 12 this year, 5,271 loan applications have been made through the participating finance providers for loans under the Credit Guarantee Scheme (CCGS), amounting to €358.33 million – last Friday it was announced that the €2bn CCGS will be extended and will remain open for applications until the end of the year.

The Credit Guarantee Scheme is the biggest ever state-backed loan guarantee in Ireland, offering an 80% Government guarantee to participating lenders to provide Irish businesses, including those in the farming and fishing sectors, with access to low interest loans as they respond to the impacts of Covid-19.

Loans provided under the scheme range from €10,000 to €1 million for terms of up to 5.5 years. Loans under €250,000 do not require any personal guarantees or collateral. Interest rates will vary depending on the loan, however they will be lower than would otherwise be available in the market.

To apply for the scheme, businesses can contact a participating finance provider directly, which locally include Synergy Credit Union, AIB and Bank of Ireland.

Since the start of 2021, 19 credit unions and 3 non-bank lenders have also joined the scheme as finance providers; 3 further non-bank lenders are nearing readiness in deploying funds through the scheme. The scheme is part of a broader package the Government has put in place to help businesses navigate this exceptionally challenging time.