The Credit Guarantee Scheme (CGS) has been designed to address three barriers to lending:
- Inadequate collateral
- Novel business market, sector or technology that is perceived by finance providers as higher risk under current credit risk evaluation practices
- Need for refinancing caused by the exit of an SMEs lender from the Irish market
The scheme is operated on behalf of the Department of Business, Enterprise and Innovation (DBEI) by the SBCI and is available from the participating banks (AIB, Bank of Ireland, Ulster Bank). If you are an SME and you are encountering one of the three barriers set out above, you can approach any one of the participating banks and apply for a loan facility under the scheme.
To help SMEs impacted by Covid-19 related issues have access to sufficient working capital, the Government has repurposed the CGS to provide counter guarantees to the banks, mitigating credit risk or need for collateral. The CGS can be used by businesses to obtain loans to support changes they need to make to their business in response to Covid-19.