NEW COVID-19 Business Loan Scheme
Zero repayments for first 6 months and the equivalent of 12 months interest-free subject to certain terms and conditions*
The COVID-19 Business Loan from Microfinance Ireland is a government initiative to support small businesses through the current challenges and protect job creation and sustainment in Ireland.
If your business has been impacted by COVID-19 resulting in a reduction of 15% or more in turnover or profit, and you are unable to secure finance from banks and commercial lending providers, the MFI COVID-19 Business Loan may be an option to help your business.
Loans can be used for working capital or changes required by the business to manage COVID19.
Product Features
- Business Loans from €5,000 to €25,000
- First 6 months – 0% interest and zero repayments
- Repayments will commence in month 7 for the remaining period of your loan.
- Government rebate for the interest paid in the following 6 months (months 7-12 of your loan)
- Interest rate after the first 6 months will be: a reduced interest rate of 4.5% APR if submitted through the Local Enterprise Office Network (or other referral partners) or 5.5% APR if you apply directly
- Loan terms typically up to 3 years
- No fees or charges
- Fixed repayments with no penalty for early repayment
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 Wexford Business Advisors Breege Cosgrave, breege.cosgrave@leo.wexfordcoco.ie or Angela Lawless, angela.lawless@wexfordcoco.ie or call 053919-6020
*Terms & Conditions:
- The maximum loan amount is €25,000 for all applicants. Existing MFI customers can apply for up to €25,000, in addition to existing borrowings subject to a maximum credit exposure of €50,000.
- The Government rebate of the equivalent of 6 months interest will be refunded automatically, directly to your bank account, in Month 13 of the loan period. This interest rebate will only be made if the full 6 repayments including interest have been made in the previous 6 months. No interest rebate is payable if this condition is not met.
- By exception, capital expenditure may be funded up to 5 years.
Eligibility
- Any business (Sole Trader, Partnership or Limited Company) with less than 10 employees and annual turnover of up to €2m and was trading prior to the coronavirus pandemic in Ireland
- Unable to secure finance from the Bank or commercial lending provider
- The business has been impacted by COVID19 resulting in a 15% or more reduction in turnover or profit.
