Brendan Smith: Covid-19 Credit Guarantee Scheme extension a welcome boost for SMEs

Fianna Fáil TD for Cavan and Monaghan, Brendan Smith has welcomed the commitment from Government to extend the Covid-19 Credit Guarantee Scheme for small and medium businesses.

Deputy Brendan Smith commented, “I am very pleased to see the extension of this vitally important scheme. It is something I addressed directly with the Minister for Enterprise; Trade and Employment in the Dáil and I also urged him to ensure any and all possible initiatives will be there to support businesses impacted by the ongoing Covid-19 pandemic.

“This scheme will give small and medium businesses a level of certainty that if they need liquidity, they will be able to access low-cost loans, unsecured up to €250,000. This will help businesses react to ongoing developments and take advantage of any opportunities over the coming months.

“The COVID-19 Credit Guarantee Scheme is available through a wide range of lenders including three banks, six non-bank finance providers and 19 credit unions. Unsecured loans of up to €250,000, at reduced interest rates are available to SMEs, primary producers and small mid-caps (companies employing less than 500).”

The Cavan and Monaghan TD added: “To date the Scheme has approved loans to more than 9,000 businesses. This is the most rapid deployment of such a level of lending to businesses in the history of the state, with the Scheme operational since September 2020.

“The continuation of the Scheme for a further six months will provide options for small businesses who need increased liquidity as they move toward a changed but more stable trading environment.”

This extension has been made possible by an extension of the European Commission’s State Aid Temporary Framework, which allows exceptional aid for businesses impacted by COVID-19.

Other financial interventions for the hospitality, events and entertainment sectors includes:

- changes to the CRSS or EWSS

- an extension of the targeted commercial rates waiver at least until the end of March

- an extra €25 million from the Covid contingency fund applied to the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media, in particular to assist the live entertainment, arts and performance sectors.

The PUP was also reopened for workers who have lost their jobs as a result of Covid-19 restrictions.