SBCI and Finance Ireland announce new €75m low-lost lending fund for SMEs

The Strategic Banking Corporation of Ireland (SBCI) and Finance Ireland today announce a new €75m low-cost lending fund for SMEs.

The new fund extends the existing partnership between the SBCI and Finance Ireland, which has already supported over 4,000 SMEs through Finance Ireland’s Hire Purchase, Leasing and Agri Asset Finance offerings to SMEs, Agri businesses and sole traders.

This fund, which follows the successful deployment of an initial €51m in SBCI funding in 2015 and an additional €75m in 2018, brings to €201m the total funding committed to Finance Ireland by the SBCI.

Finance Ireland was the first non-bank lender to provide low-cost SBCI funding to SMEs.  

It is a nationwide on-lender, well-established in the Irish market, with a multi-product offering, including SME hire purchase and leasing facilities, motor finance, commercial property loans, farm loans and residential mortgages.

Finance Ireland will use the additional lower cost SBCI funding to offer finance from €3,000 to €1m to SMEs, including sole traders and farmers through a variety of finance options, including hire-purchase agreements, leasing agreements and/or contract hire agreements, sale and leaseback facilities, and farm loans.

The funding is being made available to SMEs at a discount of just over 1% on typical rates for these products.

The new products are available immediately, with further details available at www.sbci.gov.ie and www.financeireland.ie.

Finance Ireland also participates in the Government of Ireland Covid-19 Credit Guarantee Scheme, operated by the SBCI.

SBCI CEO, June Butler said:

“The SBCI is committed to helping Irish SMEs recover from the effect of the Covid-19 pandemic, grow their business and invest in innovation and sustainability.

Today we are extending our partnership with Finance Ireland to drive further competition in Irish SME lending, making it easier and cheaper for businesses to access the finance they need to succeed.

After the success of our existing partnership, I am delighted to announce this €75 million extension.”

Finance Ireland Founder and Chief Executive, Billy Kane said:

“Extending our partnership with the SBCI will further enhance the attractiveness of our SME offering and allow us to offer additional Hire Purchase, Leasing and Agri Finance to both existing and new customers at discounted rates.

We have already supported over 4,000 SMEs with low-cost SBCI funding since becoming its first non-bank lending partner in 2015 and we will use this additional €75 million to support many more, with flexible funding for amounts between €3,000 and €1 million.

As Ireland’s leading non-bank lender, we intend to continue driving greater competition in the SME financing market with innovative, SME-friendly and competitive products.”