What the Microfinance Ireland COVID-19 Business Loan is
The Microfinance Ireland COVID-19 Business Loan is available to microenterprises that have been impacted by the COVID-19 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).
How to qualify
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.
business loans from €5,000 to €25,000 (Existing MFI customers can apply for up to €25,000 subject to a maximum credit exposure of €50,000)
6 months interest free and repayment free moratorium, with the loan to be repaid over the remaining 30 months of the 36-month loan period
loan terms up to a maximum of 3 years (capital expenditure may be funded up to 5 years)
no fees or hidden costs
fixed repayments with no penalty for early repayment
There are two interest rates applying to MFI’s COVID-19 Business Loans. Businesses can either 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.
You can talk to a Business Advisor in your Local Enterprise Office orregister here.