10 March 2020 – Increased microfinance lending to small businesses

This item is sourced from COVID-19 Policy Watch co-ordinated by Policy. We are in the process of gathering further information and aligning taxonomies for these items.

Type of Intervention: Business support
Sectors Involved:
Level of Jurisdiction: National
Lead People/Agency:

Overview: The Irish Government increased the maximum microfinance loans available from Microfinance Ireland from €25,000 to €50,000.

The loans are available to sole traders and firms with up to nine employees with turnover of less than €2 million, and for which 15 percent of actual or projected turnover or profit is negatively impacted by COVID-19.

On 21 March, the government announced that businesses can opt for the first six months to pay 0 percent interest and make no repayments. The loan would then be repaid over the remaining 30 months of the 36-month period.

The interest rates on the loans have been reduced from 7.8 percent to 4.5 percent for those applying through Local Enterprise Offices or Local Development Committees, and 5.5 percent for direct applications.

The government has provided Microfinance Irelands with an additional €13 million in capital support.
Full details here: https://www.gov.ie/en/press-release/58fc07-minister-humphreys-announces-supports-for-businesses-impacted-by-cov/