The Covid-19 Credit Guarantee Scheme aims to ensure that SMEs can access liquidity to keep their businesses operating as the economy reopens.
The Government will push through legislation “next week” for a €2 billion Covid-19 credit guarantee scheme for SMEs. This will involve the Government guaranteeing up to 80 per cent of low-cost loans for small businesses affected by the pandemic.
The new COVID-19 Credit Guarantee Scheme (CGS) will make low cost loans available to businesses impacted by the pandemic, providing much needed liquidity as our economy continues to reopen, according to the Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar.
This Scheme will be the largest credit guarantee scheme for businesses in the history of the State. It will ensure that SMEs, primary producers and small Mid-Caps can access liquidity to keep their businesses operating, as our economy continues to reopen and more and more people get back to work. It will be available for a wide range of products including overdrafts, term loans and working capital.
Commenting on the new scheme, Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar, TD, said: “We want to help viable businesses to get through the difficult phase of reopening and deal with the new realities and challenges posed by Covid-19. The Credit Guarantee Scheme will provide low-cost loans to businesses and will in turn help more people get back to work.”
To qualify for the cheap loan scheme, businesses must have fewer than 500 employees. They would also need to declare a hit of at least 15 per cent to profits or turnover due to the pandemic. Loans from €10,000 to €1 million are available.