New Covid-19 loan scheme to provide credit up to €1.5m to small businesses

A new Covid-19 Loan scheme is to be launched on Monday for small to medium size businesses struggling to cope with the impacts of the pandemic.

The loans will range from €25,000 up to €1.5 m and provide lines of credit up to six years, according to the Irish Examiner.

Businesses including farmers, food producers and the fishing industry will be included in the scheme.

The State backed scheme will be available to businesses who have experienced an adverse impact of a minimum of 15 per cent in turnover or profit due to the impact of the pandemic.

Loans less than €500,000 will be available without security, while the loans provided under the scheme will offer lower interest rates than otherwise available on the market.

Up to 30 per cent of new loans may be allowed for refinancing of existing short-term credit.

The plan will be launched by Tánaiste Leo Varadkar, Minister for Agriculture Charlie McConalogue, and Minister for Finance Paschal Donohoe.