Service
Microfinance Ireland COVID-19 Business Loan
From Department of Enterprise, Trade and Employment
Published on
Last updated on
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).
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
- government rebate for the interest paid on the loan in months 7 -12 of loan) (The rebate of 6 months interest will be refunded automatically directly to your bank account in Month 13 of the loan once the full 6 repayments including interest have been made in the previous 6 months)
- 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 or register here.
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 - templates are available here
- COVID-19 Business Plan
- Cashflow Forecast
- 6 Months Bank Statements
- Central Credit Register Report (CCR) **
**For limited companies we require a personal credit report from CCR for all shareholders or Directors with a 25% or shareholding in the Company.
