11th November 2020
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 today, 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.”
Minister for Finance Paschal Donohoe said:
“I welcome today’s announcement that the Future Growth Loan Scheme will be available from Permanent TSB. The Future Growth Loan Scheme provides SMEs with the finance they need to invest, something that is particularly required in the current climate with both Covid-19 and Brexit impacting on our SME sector. Giving SMEs access to the finance that they require to invest for their future is vital. Making the Future Growth Loan Scheme available through Permanent TSB will increase the number of SMEs that will be able to access this
financing.”
Minister for Agriculture, Food and the Marine Charlie McConalogue said:
“The Future Growth Loan Scheme has provided farmers, fishers and food businesses with a source of long-term, unsecured investment finance that was previously unavailable in the market here. There has been a high level of demand from the agri-food sector and I welcome the addition of Permanent TSB as a lender, which will bring more choice to those seeking to participate in the Scheme. Although we are all dealing with the current challenge of Covid-19, it is good to see on going investment for the future, especially as we prepare for the changed operating environment that will inevitably follow on from Brexit.”
SBCI Chief Executive Nick Ashmore said:
“The SBCI is delighted to partner with Permanent TSB for the first time in supporting small businesses in Ireland. As well as driving the successful take-up of the Future Growth Loan Scheme, this also helps achieve the SBCI’s objective of promoting greater competition in SME
lending and giving SMEs more choice from more lenders. Permanent TSB’s clear ambition to grow its SME lending, combined with the support of the Scheme, will create a compelling offering for firms looking to finance their long-term investment.”
Permanent TSB Chief Executive Eamonn Crowley said:
“This is a major statement of intent in growing our SME lending, as we work towards our ambition of becoming Ireland’s best personal and small business bank. By teaming up with the SBCI and offering SME loans under the Government’s Future Growth Loan Scheme (FGLS), we are bringing €50m in new lending capacity to both new and existing SME customers. We will continue to develop and extend our offering to SME customers backed by our strong commitment to the communities in which we operate.”
European Investment Bank Vice-President Christian Kettel Thomsen said:
“Europe is working with even more leading Irish financial partners to help Irish companies. The European Investment Bank and European Investment Fund are pleased to support the Future Growth Loan Scheme that is ensuring that companies across Ireland can stand up to the combined challenges of Brexit and Covid-19. Permanent TSB’s local knowledge and understanding of pressures faced by their business customers during difficult times will ensure that the Future Growth Loan Scheme makes an even bigger difference across the
country.”
The Future Growth Loan Scheme is offered by the SBCI with the support of the Department of Enterprise, Trade and Employment, 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.
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