SBCI teams up with Permanent TSB to provide €50m in new low-cost funding to SMEs

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SBCI teams up with Permanent TSB to provide €50m in new low-cost funding to SMEs

Permanent TSB is the 5th bank to join the €800m Future Growth Loan Scheme and becomes the SBCI’s 12th on-lending partner

The Strategic Banking Corporation of Ireland (SBCI) announces that Permanent TSB has become the latest bank to take part in the Government’s €800 million Future Growth Loan Scheme (FGLS), providing new low-cost funding to Irish SMEs.

From 11th November, Permanent TSB will offer €50 million in low-cost SME loans, with terms ranging from seven to ten years, to support capital expenditure and promote business investment for development, expansion and improvement. All FGLS loans are secured with an 80% guarantee from the SBCI, making it easier and cheaper for SMEs to borrow.

By joining the FGLS, Permanent TSB becomes the 5th bank to offer these loans and the SBCI’s 12th on-lending partner to date. The SBCI aims to enhance competition in the SME funding market by supporting a combination of banks and non-bank lenders, as well as a mix of long-established institutions and newer entrants to the market.

Over 32,000 SMEs have benefited from almost €1.7 billion in lower cost flexible funding drawn down through SBCI-backed initiatives to date.

The FGLS is delivered by the SBCI and supported by the European Investment Fund and the European Investment Bank. It is available to eligible SME and Small Mid-Cap businesses, including those in the primary agriculture (farming) and seafood (fishing) sectors in Ireland, to support strategic long-term investment.

The SBCI has allocated €50 million of the fund to Permanent TSB, which is now accepting applications from a broad range of SMEs.

Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar said:

This has been an exceptionally difficult year for many Irish businesses, but the strong uptake of the Future Growth Loan Scheme over the last few months shows that there are businesses looking beyond the immediate difficulties and making strategic investments to grow and expand. The inclusion of Permanent TSB in the scheme is welcome and will widen the reach to businesses seeking financing for the longer term.”

The Future Growth Loan Scheme is offered by the SBCI with the support of the Department of Business, Enterprise and Innovation, the Department of Agriculture, Food and the Marine, the European Investment Bank and the European Investment Fund. The Scheme benefits from a guarantee from the European Union under the European Fund for Strategic Investments (EFSI). Further information and details on eligibility can be found on the SBCI website.

Applications from eligible businesses for the loans under the scheme can now be made through Permanent TSB, AIB, Bank of Ireland, KBC Bank Ireland and Ulster Bank.

Article Published: 11/11/2020