The COVID-19 Business Loan from Microfinance Ireland is available to microenterprises that have been impacted by the coronavirus pandemic in Ireland.
Loans from €5,000 to €25,000 are available to microenterprises that meet the eligibility criteria for the COVID-19 Loan.
A microenterprise is any business with:
- fewer than 10 full-time employees
- less than €2m annual turnover and
- a Balance Sheet with Net Worth/Capital Account/Equity that does not exceed €2m
Existing MFI customers can apply for up to €25,000 by way of a COVID-19 Loan provided they meet the specific eligibility criteria for this product and their maximum lending exposure does not exceed €50,000 max. (including the loan now sought).
To apply for a COVID-19 Business Loan, the business must meet the following eligibility criteria:
- the business is a microenterprise
- the business is unable to get finance from Banks and/or other commercial lending providers
- the business is negatively impacted by COVID-19 by a minimum of 15% of turnover or profit
While all loan applicants to MFI must be able to demonstrate that they are having difficulties in accessing finance from Banks and/or other lenders, a formal Bank Decline Letter is not required.
Features of the COVID-19 Business Loan
- Business loans from €5,000 to €25,000*
- Six months interest free and repayment free moratorium, with the loan to be repaid over the remaining 30 months of the 36-month loan period.
- Government rebate for the interest paid on the loan in months 7 -12 of loan)**
- Loan terms up to a maximum of 3 years***
- No fees and/or hidden costs
- Fixed repayments with no penalty for early repayment
* The maximum loan amount is €25,000 for all applicants. Existing MFI customers can apply for up to €25,000 subject to a maximum credit exposure of €50,000.
**The Government rebate of 6 months interest will be refunded automatically directly to your bank account in Month 13 of the loan. This interest rebate will only be made once the full 6 repayments including interest have been made in the previous 6 months.
*** By exception, capital expenditure may be funded up to 5 years.
There are two interest rates applying to MFI’s COVID-19 Business Loans:
- Businesses can apply through their Local Enterprise Office and avail of a discounted rate of 4.5% APR or
- If they apply to MFI directly, a rate of 5.5% APR applies
There are a number of sectors that MFI cannot support including Gambling, Tobacco, Illegal Economic Activity. Further information is available at microfinanceireland.ie/exclusions-covid19/.
You can talk to a Business Advisor in your Local Enterprise Office
Register at microfinanceireland.ie/covid19
The 31 Local Enterprise Offices (LEO) are available to help you if you need help with your application. You can find details of your LEO on localenterprise.ie/Find-Your-Local-Enterprise-Office/
Documentation required to be supplied includes:
- COVID-19 Application Form*
- COVID-19 Business Plan*
- Cashflow Forecast*
- 6 Months Bank Statements
- Central Credit Register Report (CCR) **
*Templates available on microfinanceireland.ie/loan-packages/covid19/.
**For limited companies we require a personal credit report from CCR for all shareholders and / or Directors with a 25% or shareholding in the Company.