Background information

The COVID-19 business loan from Microfinance Ireland is a government initiative to support microenterprises through the period of economic uncertainty following the coronavirus outbreak in Ireland.

If the business is impacted or may be impacted by COVID-19 resulting in a reduction of 15% or more in actual or projected turnover or profit and there is difficulty in accessing finance from commercial lending providers, the MFI COVID-19 business loan is available.

Content of measure

Eligible applicants are microenterprises (that is, businesses with less than 10 full time employees operating as sole traders, partnership or limited companies and with up to €2 million annual turnover) which are currently trading, are not in a position to avail of bank finance and are experiencing a COVID-19 negative impact on their business (minimum of 15% of actual or projected in turnover or profit).

Loans may be used for working capital and required business changes as a result of COVID-19.

Loans of up to €50,000 can be made available with a loan term of up to three years and under advantageous terms (six months interest free and repayment free moratorium, with the loan to then be repaid over the remaining 30 months of the 36-month loan period; interest rate 4.5% - 5.5%; no hidden fees and no penalty for early repayment).

Use of measure

According to the Department of Enterprise, Trade and Employment: 1,015 applications were received for the scheme. As of 31 December 2020, 687 were approved with a total value of €18.68 million.

According to COVID-19 and Brexit Business Supports Tracker 2021, 428 loans were approved in phase 2 at a value of €7.77 million.

According to COVID-19 and Brexit Business Supports Tracker 2022 (as of 7 January 2022), 458 loans were approved in phase 2 at a value of €8.27 million.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	One person or microenterprises	Does not apply to citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement	No involvement
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Unknown

Involvement

N/A

Views and reactions

No involvement of social partners.

Sources

• 26 April 2020: gov.ie (dbei.gov.ie)
• 31 December 2020: COVID-19 and Brexit Business Supports Tracker (enterprise.gov.ie)
• 24 September 2021: COVID-19 and Brexit Business Supports Tracker 2021 (enterprise.gov.ie)
• 07 January 2022: COVID-19 and Brexit Business Supports Tracker 2022 (www.gov.ie)