Launched New Brexit loan scheme for small businesses

A new Brexit loan scheme was launched through Microfinance to help small businesses in Ireland to prepare for Brexit.

Companies whose turnover has dropped or is likely to drop by 15% or more because of the UK’s departure from the EU can avail loans between €5,000 and €25,000.

Firms with a short term cashflow, will also be able to apply for the loans, which will be available for between six months and three years.

Garrett Stokes, Microfinance Ireland CEO said businesses need to urgently start planning for the consequences of Brexit.

He also added that exporters will be more impacted by this and importers need to determine their supply chain and source of imports and plan for any delays or changes required.

Many businesses will be negatively impacted by Brexit or suffer a short term cashflow impact.

The new Microfinance Ireland (MFI) Brexit Business Loans will attract no fees, charges or hidden costs.

To be eligible for the scheme, the sole trader, partnership or company must have less than 10 employees and annual turnover of up to €2m. They must also be unable to secure finance from a bank or commercial lending provider.

Launching the scheme, Tánaiste Leo Varadkar said the loan scheme is just one way the Government is helping business to prepare and added that 77% of MFI’s lending is to businesses outside of Dublin as businesses all over in Ireland will be affected by the Brexit.

He recommended the business owners in Ireland to have a look at what needs to be done their businesses and reach out for help.