New €100 million fund for loans to SMEs

Posted by:

Small and medium businesses in Ireland will soon have ‘easier access’ to credit, loans that will be guaranteed by the EU. A fund of €100 million is the first step.

A new deal between the European Investment Fund and Bank of Ireland will allow the bank to lend SMEs in Ireland a total of €100 million, over the next two years. Loans of between €25,000 and €7.5 million can be sought.

All the loans will be guaranteed up to 50% by the European Investment Fund and the European Union (EU).

The loans are part of a “new generation of financial instruments supported under Horizon 2020, the EU’s Framework Programme for Research and Innovation”.

Ireland is the fastest-growing economy in the EU. Fast-growing SMEs need speedier access to credit in order to grow. The InnovFin SME Guarantee is a step towards this.

“In 2014, Ireland was the fastest-growing economy in the EU, but there is further scope for domestic growth,” says Carlos Moedas, European Commissioner for Research, Science and Innovation. “This first agreement under InnovFin SME Guarantee shows the EU supports this objective by facilitating investment in SMEs, the biggest job creators in Ireland and across the EU.”