A Guide to the Government Covid-19 Credit Guarantee Scheme has been published today by Banking and Payments Federation Ireland (BPFI) to coincide with the full opening and availability of the scheme by the three main banks, AIB, Bank of Ireland and Ulster Bank. The Guide is being strongly recommended to all businesses who may be thinking about utilising the Scheme to access credit at discounted rates.
In addition to describing the key features of this new €2 billion Scheme and the types of businesses that are eligible, the Guide provides answers to questions likely to arise for any interested business:
- What types of businesses are eligible?
- How do I know whether the Scheme is the best option for my business?
- How do I calculate the maximum amount I can borrow under the Scheme?
- How do I apply for a loan under the Scheme?
- What information will I need to provide to a lender?
- Which lenders are providing funds?
Ali Ugur, BPFI’s Chief Economist, states:
“The Credit Guarantee Scheme is designed to incentivise lenders to continue providing finance to businesses by providing them with an 80% State guarantee on finance provided to eligible businesses. The interest rate charged by participating lenders, while reflecting market competitiveness, will also reflect the benefit of the State guarantee to the lender and result in a discounted interest rate to borrowers. A number of leading retail banks have already committed to participate in the Scheme as operated by the Strategic Bank Corporation of Ireland and this number may well increase over time.”
“There’s a lot of practical, hands-on information in this Guide and we would encourage all interested businesses to use this information for their own benefit. A great many businesses have been through very difficult and challenging times and may now be seeking lending to support their businesses. We believe this information will help them in managing the transition from lockdown to increased business activity levels”, states Ugur.
Note: Banking & Payments Federation Ireland (BPFI) represents the banking, payments and fintech sector in Ireland. Together with its affiliates, the Federation of International Banks in Ireland, and the Fintech & Payments Association of Ireland, BPFI has 100 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.
Contact: Jillian Heffernan, Head of Communications, BPFI, email@example.com 087 9016880