Microfinance Loans

  MFI Logo 2016        LEODLR_Logo_M

Microfinance Ireland (MFI), is a not-for-profit lender, established to deliver the Government’s Microenterprise Loan Fund.

Please note: Due to unprecedented demand from micro-businesses since the pandemic began, both the COVID19 Business Loan Fund and the standard MFI Loan Fund are now fully subscribed. 

Microfinance Ireland Loans funds are now paused but it is expected that they will reopen once new legislation is passed and additional Government funding, as outlined in the published Microenterprise Loan Fund (Amendment) Bill 2020 is made available which will hopefully happen in a number of weeks. 

Details of the new funds and any changes to the criteria will be announced as soon.

 

MFI works very closely with the Local Enterprise Offices (LEOs), providing loans to small businesses. Helping to create and sustain employment by providing loans to small businesses is at the heart of what they do. MFI works with small businesses based in the Republic of Ireland, with fewer than 10 employees and turnover up to €2m, by providing unsecured business loans.

They have various loan packages which include:

COVID-19 Business Loan PackageMFI Covid-19 Loan 25K

  • Supports businesses that are or may be impacted negatively by the coronavirus in Ireland
  • Loans can be used for working capital and required business changes as a result of COVID-19
  • Loans from €5,000 – €25,000
  • Loan Terms typically up to 3 years
  • First 6 months – 0% Interest & Zero repayments
  • No fees/no hidden costs
  • Fixed repayments with no penalty for early repayment
  • Reduced interest rate 4.5% APR for LEO applications and 5.5% APR for Direct applications

Who can apply?

  • Any business** (Sole Trader, Partnership or Limited Company) with less than 10 employees and annual turnover of up to €2m
  • Not in a position to avail of Bank finance and other commercial lenders;
  • 15% of actual or projected turnover or profit is negatively impacted by COVID-19

On 7th April, LEO DLR hosted a webinar (click here for other webinar videos) which highlighted some key supports available for businesses. See MFI CEO Garrett Stokes' talk about MFI supports below:

Find out more about MFI's COVID-19 Business Loan here and how to apply below.

Other Loan Packages

MFI's other loan packages offer €2,000 to €25,000 for commercially viable proposals. Loans can be used to fund start-up costs, working capital, purchase of stock, equipment, machinery, business expansion etc.

They consider applications from businesses who may have been declined facilities from other commercial providers

Whether your business is set up as a Sole Trader, Partnership or a Limited Company, you are eligible to apply. All business sectors are eligible to apply, with these exceptions.

You can apply for an MFI loan through your Local Enterprise Office and avail of a 1% discount off the standard interest rate (currently 7.8% APR) bringing the rate to 6.8% APR.

Once a customer has been approved a loan with MFI, mentoring support will be provided with a mentor from the LEO Mentor Panel. Mentoring is a critically important non-financial learning and support tool, helping business develop and grow.

Calculate your monthly repayments using MFI’s Loan Calculator

To make a loan application, you will need to complete and submit a number of documents as part of the application process. See below and let us know if you have any queries.

Applying for a Microfinance Ireland loans via LEO DLR

It is strongly recommended that you visit the MFI website before applying. Please visit: https://microfinanceireland.ie/loan-packages/

  1. You will need to establish if you are eligible to apply to MFI for your chosen business loan. Most businesses are eligible to apply.
  2. Once you have established if you are eligible to apply to MFI, you should scroll down to the ‘Application Documents’ section of the Loan's webpage. For COVID-19 Business loans, see here: http://microfinanceireland.ie/loan-packages/covid19/
  3. Download and complete the full Loan Application Form (PDF).
    Please note: You should start collecting the documentation (as noted in the checklist on the application form) in a file, complete the application form and begin drafting a Business Plan and Financial Projections in the templates provided by MFI on their website.
  4. When you have progressed as far as you can with your Loan Application Form, Business Plan and Financial Projections, AND when you have all other documents available, printed off and stored in a folder/scanned to email, you should email leo@dlrcoco.ie to confirm:

    a) that you have completed the above and;
    b) outline if there are any areas you had difficulty completing. DLR LEO will assign a mentor to help you complete/review your application before submitting to MFI.

    The appointment(s) with a business mentor are free of charge and help get your application to the standard that MFI require.

  5. LEO DLR does not apply a fee for the first 3 hours mentoring services when it is offered in support of a submission to Microfinance Ireland. If more than 3 hours mentoring is required in order to get your application ready for submission then a fee of €25 per hour will apply. This fee will need to be paid in advance and LEO DLR will send you a payment link on request of additional hours (see the exception at the top of this page).
  6. Following the meeting with a LEO DLR business mentor, we will forward the submission, together with the mentor's assessment, to Microfinance Ireland for review.
  7. Microfinance Ireland will communicate their decision on the loan application to the applicant and to LEO DLR.

For further specific details in how to apply for an MFI Business Loan with LEO DLR, you can refer to here. If you would like further details call us or email us with your query.