Mark Cunningham, Director, Bank of Ireland Business Banking said: "We are pleased to be the first Irish Bank to be accredited under the terms of the Credit Guarantee Scheme 2015. The inclusion of refinancing Banks exiting the Irish market and the extension of the Guarantee from three to seven years is very much welcomed as it is envisaged to further assist in the availability of credit into the Irish SME market. The Bank continues to work closely with Capita, the Scheme operators and the Department of Jobs, Enterprise and Innovation in promoting it where relevant. As Ireland's No 1 Bank for business customers and the main provider under the Credit Guarantee Scheme, we would encourage SMEs that are looking to secure funding for their business to come and speak to us.”
The Credit Guarantee Scheme provides a 75% guarantee to banks against losses on qualifying loan facilities. Bank of Ireland, AIB and Ulster Bank are participating lenders. The borrower pays a 2% annual premium, which partially covers the cost of providing the guarantee.
Following a public tendering process, Maynooth based company, Capita Asset Services were selected to manage and operate the Scheme on behalf of the Department of Jobs, Enterprise and Innovation.
How to apply
Applications for credit should be made to the participating banks in the usual way. The lender will assess the application. In the event that the lender determines that the application is viable but not approved because of insufficient security or higher risk in the case of a growth/expansionary SME, the lender will then determine eligibility under the Scheme.
In the event that an SME has an application for credit refused by one of the participating lenders, the customer can request the bank to consider the application under the Credit Guarantee Scheme.
At present participating banks are Bank of Ireland for the Credit Guarantee Scheme including refinancing for exiting banks and maximum period of guarantee 7 years; and AIB and Ulster Bank for the original Credit Guarantee Scheme.