SMEs can now borrow €50,000 from specialist small business lender
Microfinance Ireland, the not-for-profit lender funded by the Department of Enterprise, Trade & Employment and mandated to manage its Microenterprise Loan Fund, has received permission to double its lending limit to €50,000. This measure is part of the government’s recently announced package of measures to support small businesses. These loans can be used by businesses for either cashflow or expansion purposes.
On publication of the legislation which will allow for Microfinance Ireland to increase its lending limit to €50,000 Minister for Enterprise, Trade & Employment, Peter Burke TD said,
“This development is one of a range of measures I announced earlier in the Summer to assist our small businesses who are the backbone of our economy. The measure doubles the value of loans available to our microenterprises from MFI. The increase is substantial with microenterprises now able to apply for loans up to the value of €50,000.
“Microfinance Ireland provides vital support to microenterprises across Ireland by lending to businesses that may not be able to obtain loans from other commercial lenders. This increase will help established businesses to secure appropriate finance to sustain and grow their business and will also offer another avenue of financial support to assist start-up enterprises.”
Commenting on the increased lending limit, Lorraine Corcoran, Chair of Microfinance Ireland said, “We are delighted that the Government has agreed to increase our maximum loan amount to €50,000. There was strong demand for €50,000 loans when our maximum loan amount was temporarily increased during the Covid period. Our customers and partners have called for a permanent increase, and it is a welcome development to be able to respond positively to this business demand.”
Des McCarthy, CEO of Microfinance Ireland said, “The latest Credit Demand Survey indicates that around 60% of microenterprises across the economy sought credit of up to €50k. In our own case, in the year to date to July 2024, over 40% of applications were for amounts between €20k - €25k – the old maximum loan amount. We expect to see significant demand for loans above €25,000 and we look forward to being able to help even more small businesses with this increased level of support.
“We provide unsecured business loans to both start-ups and established businesses that are having difficulty in getting access to funding. We lend to businesses in hospitality, food, manufacturing, construction and trades, retail and services to name but a few.
“Helping to create and sustain employment by providing loans to small businesses is at the heart of what we do. Our fund was put in place to support small businesses with less than 10 employees and with an annual turnover of less than €2 million who may be having difficulties accessing funding for their business from banks and other commercial lenders.”
For more information visitwww.microfinanceireland.ie
