FUNDING options for SME's to re start after COVID 19
RMcH states there are various options for funding your BUSINESS re start after COVID 19, also check out the Innovate together fund, closes 27 May 2020.
Strategic Banking Corporation of Ireland (SBCI)
It is a government backed entity, whereby you apply direct to SBCI, (email completed applications), once approved by SBCI (relatively easily), you then approach your pillar bank (BOI, AIB or UB) who assess the loan application under normal lending criteria (business plan required etc) BUT the loan is guaranteed up to 80/90% by the state.
''The SBCI aims to deliver lower cost, long-term, innovative and accessible funding to independent Irish SMEs. Risk sharing schemes seek to assist Irish Businesses in accessing funding through the provision of partial guarantees for loan facilities. Current schemes available include the Brexit Loan scheme, The Credit Guarantee Scheme and the Future Growth Loan Scheme. The SBCI will continue working to identify gaps in the Irish funding market and develop additional schemes to address these''
COVID 19 LOAN WORKING CAPITAL APPLICATIONS
- Applies to Micro, Small & Medium entities
- Loans amounts between 25k to 1.5m
- Max interest rate with 1-3 year loan term!, has to be lengthened
- No security required for loans up to e500k
- Optional 3 mth interest only repayments
Conditions:
- Your business must be negatively impacted by a minimum of 15%
- 90% of loan will be spent on research & innovation, remaining 10% on such associated activities
- You are operating in a market for less than 7 years and research & innovation cost incurred represent at least 5% of total operating costs in at least 1 out of 3 preceding years.
https://sbci.gov.ie/schemes/covid-19-loan-application
Other quick links:
BREXIT LOAN
https://sbci.gov.ie/schemes/brexit-loan-scheme
FUTURE GROWTH LOAN SCHEMES
https://sbci.gov.ie/schemes/future-growth-loan-scheme
SME – CREDIT GUARANTEE SCHEME
https://sbci.gov.ie/schemes/sme-credit-guarantee-scheme-cgs
RMcH comment: the pillar banks are still ultra conservative, so expect the worst & hope for the best. A good suggestion is to contact your bank prior to SBCI application to ascertain loan amount that is reasonable etc.
LOCAL ENTERPRISE OFFICE (LEO) in partnership with MICROFINANCE IRELAND(MFI)
'The COVID-19 Business Loan from Microfinance Ireland (MFI), in partnership with Local Enterprise Offices, is a Government-funded initiative to support small businesses.
It’s designed for micro-enterprises that are
a) having difficulty accessing Bank finance and
b) impacted, or may be impacted negatively, by COVID-19 resulting in a reduction of 15% or more in turnover or profit.
Loan Features:
∫ Business Loans of up to €50,000 are available for eligible micro-enterprises (ie businesses with less than 10 employees and up to €2m annual turnover) that are currently trading
∫ Loans may be used for working capital and required business changes as a result of COVID-19
∫ Loan terms are typically up to 3 years ∫ 6 months interest free and repayment free moratorium
∫ New low interest rate of 4.5%, if submitted through your Local Enterprise Office
∫ No fees or hidden costs with fixed repayments. ∫ No penalty for early repayment '
LEO Trade Online Grant now Available
To apply for the Trading Online Voucher, you have to attain a 3hrs seminar.
They will give the voucher to only to the participants.
Second voucher now available
Under the Government’s National Digital Strategy, the expanded Trading Online Voucher Scheme helps small businesses with up to 10 employees to trade more online, boost sales and reach new markets. There is up to €2,500 available through the Local Enterprise Offices, with co-funding of 10% from the business.
Open to businesses that have been trading for at least six months, training and further business supports are also provided. Businesses that have already received a Trading Online Voucher can now apply for a second voucher, where upgrades are required.
Funding can be used towards adding payment facilities or booking systems to your website or developing new apps for your customers.
The voucher can also be used towards subscriptions to low cost online retail platform solutions, to help companies quickly establish a retailing presence online
- Trading Online Voucher Information Seminar -Those wishing to avail of a voucher, must attend an obligatory Trading Online Voucher Information seminar. At each seminar attendees will be informed of the purpose of the scheme and how best to use and get value from the application of the voucher.
- Submit Application Form -Only those people who attend the trading online voucher information seminar and meet the eligibility criteria will be sent an application form to apply for a voucher from our LEO. The next application deadline is:
https://www.localenterprise.ie/DLR/Training-Events/Online-Bookings/
https://www.localenterprise.ie/response/Business-Continuity-Voucher/
RMcH comment: please let me know what you need once you have talked with your bank (SBCI) and/or reviewed the LEO/microfinance details. We are always here to assist you.
SOCIAL INNOVATION FUND
'Social Innovation Fund Ireland is a national organisation supporting Ireland’s best social innovations through cash grants and business supports.
Our purpose is to make Ireland a better more inclusive place through social innovation.
Every euro we raise in philanthropy is matched by Government through the Department of Rural and Community Development from the Dormant Accounts Fund and more recently through the Departments of Employment and Social Protection and Children and Youth Affairs.
We partner with corporates, SME’s, families and individuals who want new, tangible and
real-world ways to tackle some of the pressing issues facing our country today'
The deadline for applications is 5 pm Wednesday 27th May 2020, To start your application now; Click link below:
http://www.socialinnovation.ie/innovate-together/
14 May 2020.
