Microfinance Ireland - COVID 19 Small Business Loans

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

Covid 19 Update - Your business may be eligible for funding through Microfinance Ireland, which offers loans to micro-enterprises (sole traders and firms with up to 9 employees). In response to the current outbreak, funding available through Microfinance Ireland will be increased from €25,000 to €50,000, as an immediate measure to specifically deal with the exceptional circumstances micro-enterprises are facing. Loans are available at an interest rate of between 6.8% and 7.8%. Businesses can apply through  Local Enterprise Office Kilkenny or directly at microfinanceireland.ie.

MFI COVID 19 Business Loans - Up to €50,000 available

 

The COVID 19 Business Loan from Microfinance Ireland (MFI) is a government funded initiative to support small businesses through the

current period of uncertainty and protect job creation/sustainment in Ireland.

 

If any micro-enterprise is impacted or may be impacted negatively byCOVID-19 resulting in a reduction of 15% or more in turnover or

profit, AND they are having difficulty in accessing Bank finance, the MFI COVID-19 Business Loan may be an alternative funding

solution for them.

 

Loan features

  • Business Loans up to €50,000 for eligible micro-enterprises (Businesses with less than 10 employees and up to €2m annual turnover) that are currently trading
  • Loans may be used for working capital and required business changes as a result of COVID 19
  • Loan terms typically up to 3 years
  • Interest only payments up to 6 months
  • Interest rate of 6.8% if submitted through Local Enterprise Office or referred by your Bank and 7.8% if you apply to us directly
  • No fees and/or hidden costs with fixed repayments with no penalty for early repayment

 

Note to Loan Features:

Capital expenditure, and in exceptional circumstances working capital loans, may be funded up to 5 years.

In addition, by exception, loans may be approved for extended interest-only period of more than 6 months.

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

A business is or may be impacted as a direct result of the coronavirus outbreak in Ireland resulting in a 15% or more reduction in turnover or profit.

Documents Required to apply

Application   Form (using standard application form and fill in the amount required)

[Note: A new COVID19 Application Form is currently   being prepared which will include Self Declaration so this is just a   temporary arrangement)

Self-Declaration   Form (applicant has to confirm that they meet all the eligibility criteria)

COVID19   Business Plan

Cashflow   Forecast

Business &   Personal Bank Statements

CCR

In addition, for   loans over €25K

Aged List of   Debtors

 

Aged List of   Trade Creditors and Preferential Creditors

 

Application Process

  • Same process as for all ‘standard’ MFI loans
  • MFI will come back as quickly as possible with a decision
  • Applications along with supporting documentation can be sent directly by post or email to info@microfinanceireland.ie

 

Existing MFI Loan Customers

For businesses with an existing loan with Microfinance Ireland and the business is either currently impacted or may be impacted by

COVID 19, please contact MFI to discuss the situation so that we can help them in getting your business back on track.

More information is available on:

https://microfinanceireland.ie/loan-packages/covid19/

 

 General MFI Information

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 of €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:  http://www.microfinanceireland.ie/exclusions/

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. critically important non-financial learning and support tool, helping business develop and grow.

Calculate your monthly repayments using MFI’s Loan Calculator  http://www.microfinanceireland.ie/apply-now/loan-calculator/ 

To make a loan application, you will need to complete and submit a number of documents as part of the application process. Talk to your LEO Business Advisor or Click here  http://www.microfinanceireland.ie/apply-now/loan-documents/ for more information.

 

Share: