About the Covid-19 Credit Guarantee Scheme

Participating credit unions are partnering with the Department of Enterprise, Trade & Employment to provide support to our Micro and SME members that have been impacted by Covid-19.

The Covid-19 Credit Guarantee Scheme is available through participating credit unions to assist in the recovery of your business by providing low-cost loans.

This Scheme is being administered by the Strategic Banking Corporation of Ireland (SBCI) further details can be found on their website.

How to Apply

Simply contact the credit unions on this website to find out if you qualify.  If you do not qualify you can still apply for one of our standard business loans.

Key features of this Scheme available from your Credit Union

You can apply for this Scheme, if your business:

  • has been adversely impacted by Covid-19 by a minimum of a 15% reduction in actual or projected turnover or profit.
  • was not in financial difficulty on 31st December 2019
  • can return to viability in the future.

Loan terms under are between 3 months – 5 years & 6 months.

Eligible purposes include:

  • Working Capital
  • Investment
  • Refinance of debt incurred as a result of Covid-19

You can borrow between €10,000 – €300,000 and the amount will be determined by the higher between the following two criteria:

  • 25% of your turnover in 2019
  • Double your annual wage bill for 2019
  • There may be exceptional circumstances that may allow you to borrow an amount higher than the above two points, talk to us.

No security will be required for all loans up to €250,000.  For loans greater than ‘€250,000 up to €300,000’ a personal guarantee may be required for 20% of the loan amount.

Discounted variable interest rates are available, as outlined below:

Loan Amounts Covid-19 Credit Guarantee Scheme
Less than & including €25,000 5.95%
Greater than €25,000 to €75,000 4.95%
Greater than €75,000 to €150,000 4%
Greater than €150,000 to €300,000 4%
Annual Expenses Loans 4.25%

A Guarantee for 80% of the Loan is provided from the Department of Enterprise, Trade and Employment.

A Premium is to be paid to the Department by all participants in this scheme, which is collected by the Credit Union on behalf of the Department.  This Premium is in addition to your loan repayments.

Risk Premium Terms Rates
Longer than 5 years 0.68%
Equal to or shorter than 5 years but longer than 4 years 0.61%
Equal to or shorter than 4 years but longer than 3 years 0.50%
Equal to or shorter than 3 years but longer than 2 years 0.29%
Equal to or shorter than 2 years but longer than 1 year 0.26%
Up to and including 1 year 0.15%

This scheme will run until the 31st December 2021, or until it is fully subscribed.

Terms & Conditions apply:

All loans are subject to application and approval, creditworthiness and repayment ability will be assessed. Lending Terms & Conditions Apply. The interest rate is variable.

 

Warning: The cost of your payments may increase

Warning: If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit in the future.

Ready to apply?

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