Terms and Conditions

Definitions:

“Aid” means state and/or Commission funding which, but for an exemption granted pursuant to regulations adopted by the EU Commission (including but not limited to the De Minimis Regulation), meets the criteria in Article 107(1) of the Treaty on European Union.

“Commission” means the Commission of the European Union.

“Customer” is used to refer to the SME or Small Mid-cap borrower.

“DAFM” means the Department of Agriculture, Food and the Marine.

“DBEI” means the Department of Business, Enterprise and Innovation.

“De Minimis Regulation” means EU Regulation No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid.

“EIB” means the European Investment Bank.

“EIF” means the European Investment Fund.

“Facility” means the debt facility offered to the Customer.

“Finance Documents” means the documents entered into in connection with the Facility.

“Non-Co-Operative Jurisdiction” means any jurisdiction that does not cooperate with the European Union in relation to the application of internationally agreed tax standards (i.e. any jurisdiction classified as “non-compliant” by the Organisation for Economic Cooperation and Development (OECD) and its Global Forum on Transparency and Exchange of Information for Tax Purposes, from time to time, unless otherwise notified by the EIF).

“Pre-Eligibility Application Form” means in respect of each Facility, the completed pre-eligibility application form as delivered by the Customer to the SBCI.

“SBCI” means the Strategic Banking Corporation of Ireland

“SBCI Scheme” means the SBCI Brexit Loan Scheme.

“SME” means a micro, small or medium-sized enterprise which employs fewer than 250 persons and has an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million. (See commission recommendation 2003/361/EC for further details  (http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32003H0361&from=EN)

“Small Mid-cap” means an enterprise within the meaning of Article 1 of the Title I of the Annex of the Commission Recommendation (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32003H0361&from=EN) which:

(a) has up to 499 employees calculated in accordance with Articles 3, 4, 5 and 6 of the  Title I of the Annex of the Commission Recommendation; and

(b) is not an SME.

 

 

Eligibility

 

The Borrower must comply with the following

  • it is an SME or Small Mid-cap;
  • it is not active in any sector in Ireland outside the scope of the SBCI Scheme including, without limitation, the agricultural sector and/or fishery and aqua-cultural sector;
  • it is not an “undertaking in difficulty” (within the meaning of the Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty on European Union and the Treaty on the Functioning of the European Union (OJ C 83 of 30.3.2010), (as amended, restated, supplemented and/or substituted from time to time); (http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014R0651&from=EN)
  • it does not have a substantial focus on one or more Restricted Sectors listed in Commission Implementing Regulation (EU) No 964/2014. (https://publications.europa.eu/en/publication-detail/-/publication/881394aa-3a40-11e4-8c3c-01aa75ed71a1/language-en)
  • it is not established in a Non-Co-Operative Jurisdiction (meaning a jurisdiction that does not cooperate with the European Union in relation to the application of internationally agreed tax standards);
  • it is established and operating in Ireland;
  • it has not received loans under the SBCI Scheme of more than €1,500,000 in aggregate;
  • it has not received, including under the applicable Facility, Aid in excess of what is permitted under the De Minimis Regulation.
  • Is not delinquent or in default under any agreement with the Bank or another financial institution (save as may be agreed with the Bank at its entire discretion)
  • is not bankrupt or being wound up or having its affairs administered by the courts;
  • in the last 5 years has not entered into an arrangement with creditors, in the context of being bankrupt or wound-up or having its affairs administered by the courts;
  • has not been convicted of an offense or subject to a ruling concerning professional conduct, fraud, corruption, involvement in a criminal organisation, money laundering or any other illegal activity where such illegal activity is detrimental to the European Union’s financial interests.
  • is not performing, and shall not perform, illegal activities according to applicable legislation in the country of the SBCI, the Bank or the Customer (including national, Union and international legislation, including the Charter of Fundamental Rights of the European Union and the European Convention on Human Rights and its Supplementary Protocols).

 

The Customer must use the loan proceeds for:

  • working capital requirements; and
  • innovation, change or adaption of its business to mitigate the impact of Brexit (subject to any conditions imposed on the purpose of the Facility by the SBCI Scheme),

 

The Customer must not use the loan proceeds for:

  • refinance of existing debt owed by it;
  • financing of specific export operations or current expenditure linked to the export activity, including, for the avoidance of doubt, trade finance  products;
  • financing contingent upon the use of domestic products over imported products;
  • financing the establishment and operation of a distribution network in other Member States of the European Union; or
  • finance the purchase of road freight transport vehicles.

The customer must confirm that, as at the date of the contractual documents relating to the Facility entered into by the Customer, it satisfies the eligibility criteria for the SBCI Scheme and that it undertakes to procure that it shall at all times comply with those eligibility criteria.

The Customer undertakes to confirm the amount of Aid received by it and the amount of Aid receivable by it under the Facility, in each case in respect of Aid under the De Minimis Regulation and if the Customer receives, under the SBCI Scheme or otherwise, aid in excess of what that Customer is permitted to receive by law, the Customer shall return to the Bank for onward transmission to the SBCI any such excess aid received under the SBCI Scheme in breach of law together with any other amount due in respect of that aid immediately upon: (i) the Customer becoming aware of such excess receipt; and/or (ii) the Bank notifying the Customer of same; and

The Customer undertakes to maintain and be able to produce all documentation related to any information supplied in connection with the Facility for a period of seven (7) years after the termination of the SBCI Scheme.