• Loans from €10,000 to a maximum of €1,000,000 per borrower, subject to Loan Amount Criteria, see below for further details.
• Terms of between 3 months up to 5.5 years.
• Loan Amounts =<€250,000 will be unsecured (unless it is a requirement of the product feature e.g. asset finance, invoice discount facilities).
• Amounts >€250,000 may be secured however, a personal guarantee may only be sought in circumstances where it is required to capture supporting security, or where it is an uncollateralised personal guarantee and is limited to a maximum of 20% of the initial finance agreement amount.
• Loans will be available up to the 30^th June 2022.
• Up to 12 months interest and / or capital moratoria are possible under the Scheme, these remain at the discretion of the participating finance provider.
• The Scheme will permit the refinance and rollover of debt incurred as a result of Covid-19: e.g. Covid-19 related expenses that were initially funded through short term/temporary facilities such as overdrafts.

The scheme is currently available through a wide range of lenders. The updated list is available here.

The Covid-19 Credit Guarantee Scheme will expire on the 30^th of June 2022 and it will not be available any longer after this date.

Be advised that the Scheme’s on-lenders may stop accepting new applications in advance of the above deadline.

Please note: AIB, Close Brothers and Linked Finance are not accepting new applications under the Covid-19 Credit Guarantee Scheme.

Viable micro, small and medium-sized enterprises (SMEs), primary producers and small mid-cap enterprises that meet the eligibility criteria and have or expect to have a reduction of minimum 15% in their turnover or profitability as a result of Covid-19. SMEs are defined by the Standard EU definition [Commission Regulation 2003/361/EC] as enterprises that:

• have fewer than 250 employees
• have a turnover of €50 million or less (or €43 million or less on their balance sheet)
• are independent and autonomous i.e. not part of a wider group of enterprises
• have less than 25% of their capital held by public bodies
• is established and operating in the Republic of Ireland

A small mid-cap is an enterprise that is not an SME but has fewer than 500 employees.

Businesses that cannot apply for this product include those that:

• are in financial difficulty: The guarantee may not be granted to undertakings that were already in difficulty (within the meaning of the General Block Exemption Regulation) on 31 December 2019: In derogation to the foregoing, aid can be granted to micro or small enterprises (within the meaning of Annex I of the General Block Exemption Regulation) that were already in difficulty on 31 December 2019 provided that they are not subject to collective insolvency procedure under national law, and that they have not received rescue aid or restructuring aid.
• are bankrupt or being wound up or having its affairs administered by courts.
• in the last five years have entered in to an arrangement with creditors, in the context of being bankrupt or wound-up or having its affairs administered by the courts.
• are convicted of an offence concerning professional misconduct by judgement, 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.

• Working capital or investment requirements

The amount of credit that can be obtained by a borrower under the Scheme (whether under one or more finance agreements) is subject to the Scheme rules and the Temporary Framework. The maximum amount of the credit that is permitted to be advanced to a borrower under the Scheme cannot exceed €1m, and will be determined by one of the following three criteria:

• double the borrower’s annual wage bill for 2019, or for the last year available. In the case of a borrower created on or after 1 January 2019, the maximum loan must not exceed the estimated annual wage bill for the first two years in operation.
• 25% of the borrower’s total turnover in 2019.
• in limited cases and with appropriate justification, the amount of the loan may be increased to cover the liquidity needs of the borrower from the moment of granting for the coming 18 months for SMEs and for the coming 12 months for Small Mid-Caps.

You will need to provide certain documents to the finance provider as part of this application process to determine and evidence the maximum credit amount which you are entitled to apply for. These requirements vary, but are likely to include: - Management/Audited accounts/Business Plan.

The interest rate applicable to the loan will be determined by the participating lender. In addition, the participating lender will collect a premium which is payable to the Government of Ireland.

The premium rate that will apply will depend on the size of the business and the length of time for which the credit is being advanced, as per the tables below:

SMEs

Small Mid-Caps

Please see below a number of examples to illustrate the indicative cost of the premium. Please note that these are for illustrative purposes only, and that the participating lender will calculate the actual premium payable in each case.

Examples of Premium Payable

• Each case assumes equal monthly loan repayments and full amortisation over the term.
• Total Premium Cost is the indicative total cost over the full term of the loan.

• Refinance of debt incurred pre the Covid-19 pandemic.
• Finance of pure real estate development activity.

The following NACE codes are eligible for inclusion under the scheme.

NACE codes

The lender is ultimately responsible for the credit decision. If declined, the applicant has the option of:

• using the lender’s internal appeals mechanism;
• if the original decline decision is upheld, referring the decision to the Credit Review Office

The Covid-19 Credit Guarantee Scheme has been notified to the European Commission on the basis that the credit to be provided falls within the parameters set down in the Temporary State Aid Framework.