PTSB extends business banking offering by joining Government’s low-cost Growth and Sustainability Loan Scheme for SMEs
Tuesday 16 April - PTSB is extending its business banking offering by joining the Government’s €500 million Growth and Sustainability Loan Scheme for Irish SMEs, operated by the Strategic Banking Corporation of Ireland (SBCI).
The initiative marks the latest stage in the Bank’s expanding business banking proposition, building on its acquisition of Ulster Bank’s performing micro-SME loan book, it’s entrance into the asset finance market with the launch of PTSB Asset Finance, and its Year-on-Year growth of its SME lending in 2023 by +11%.
Under the new initiative being announced today, PTSB will use the Growth and Sustainability Loan Scheme to offer €70 million in loans to SMEs. The Bank will offer loans from €25,000 to €3 million for terms from 7 years up to 10 years; with loans of up to €500,000 available on an unsecured basis.
The scheme is designed for SMEs (including farmers, fishers, foresters and food businesses) that are investing in their growth, resiliency, or investing in climate action and environmental sustainability measures that will enhance their performance.
This is the third time that PTSB has teamed up with the SBCI to enhance access to low-cost competitive finance for SMEs, building on the success of previous partnerships involving the Future Growth Loan Scheme and the Brexit Impact Loan Scheme, which have resulted in PTSB providing €82 million in low-cost funding through these schemes to Irish businesses.
Minister for Enterprise, Trade and Employment, Peter Burke TD, said:
“I am delighted to welcome the addition of PTSB as an on-lender for our €500 million Growth and Sustainability Loan Scheme. This scheme provides long-term finance at a lower cost which is critical funding for SMEs to facilitate growth, develop their products and services, invest in energy efficiency and sustainability.
Climate and environment are central issues to competitiveness and business success and this scheme will act as an enabling instrument towards these goals. Loans for climate action and environmental sustainability purposes will also benefit from an additional interest rate discount.”
Minister for Finance, Michael McGrath TD, said:
“SMEs are at the heart of the Irish economy, creating employment and economic prosperity throughout the country. This Government is committed to supporting SMEs to invest in the growth and resilience of their business and to continue to assist them as they transition to an environmentally sustainable business model.
The Growth and Sustainability Loan Scheme, delivered by the Strategic Banking Corporation of Ireland and underpinned by a guarantee from the European Investment Fund, makes €500 million in competitively priced loans available to SMEs, including primary producers. These loans, ranging from €25,000 to €3 million, will enable SMEs to make essential investments in their productivity, resilience and, in particular, environmental sustainability.
30% of the scheme’s lending capacity is targeted to SMEs investing in the environmental sustainability of their business with these loans benefitting from a further ‘green’ interest rate discount.
I welcome PTSB joining as on-lender to this market, as they launch both the growth and sustainability elements of this important scheme.”
Minister for Agriculture, Food and the Marine, Charlie McConalogue TD, said:
“I welcome PTSB as the newest lender to the market for the €500m Growth and Sustainability Loan Scheme (GSLS). The agri-food sector has faced many challenges in recent years and providing access to finance ensures businesses can continue to innovate and grow. Funding will be available for both green and growth purposes to facilitate strategic investment for eligible businesses, including farmers, fishers, foresters, and food businesses, to ensure continued viability and environmental sustainability into the future.”
PTSB’s Retail Banking Director, Patrick Farrell, said:
“PTSB is delighted to partner with SBCI to offer businesses long-term, low-cost loans to invest in climate action and environmental sustainability measures.
This Scheme allows businesses to incorporate sustainability into their business practices and invest in their growth and resilience. As the impacts of climate change become more severe and widespread, it is important that we support and enable businesses to navigate the transition to a low-carbon economy.
Our partnership with SBCI further enables us to play our part in addressing the global climate crisis, while providing opportunities for businesses to unlock their potential and grow.”
SBCI Chief Executive, June Butler, said:
“I welcome today’s announcement that the Growth and Sustainability Loan Scheme will be available from PTSB, widening the reach for businesses seeking financing for a longer term.
The Scheme assists Irish businesses, including farmers and fishers, looking to invest in greener measures and grow profitability by providing low-cost loans of up to €3 million with terms of seven to 10 years.
Giving SMEs access to the finance they require to invest for their future is vital. At SBCI, we are committed to supporting businesses making the strategic investments needed to grow, expand, and become more sustainable and profitable.”