Microfinance Ireland provides business loans to micro enterprises who have been struck by the Covid 19 pandemic. Micro enterprises which meets the eligibility criteria will get Covid 19 loans worth €5000 to €25,000.
Any business which has less than 10 full time employees, less than €2m annual turnover and a balance sheet with Net worth/ Capital Account/ Equity that doesn’t exceed €2m are considered a micro enterprise. Existing customers of Microfinance Ireland can apply upto €25,000 under Covid 19 loans but they should meet the criteria too.
The criteria for eligibility to Covid 19 loans are:
- The business should be a micro enterprise
- The business is not eligible to get loans from other banks or financial institutions.
- The business should have faced a negative impact of Covid 19 which has a minimum 15% turnover or profit.
The applicants need to prove that they are unable to get loans from other institutions but a bank decline letter is not necessary.
Features
The Covid 19 loans have certain features which makes it more acceptable among micro enterprises.
- Business loans worth €5000 to €25000 are provided.
- In the 36 month loan period, six months are interest free and repayment free moratorium in which the loan should be repaid during the remaining 30 months.
- No fees or hidden costs.
- Loan terms upto maximum of three years.
- Government rebate for the interest paid on the loan 7-12 months.
- Fixed payments and no penalty for early repayment.
The 6 months Government rebate will be refunded to your bank account directly on 13th month of loan. The rebate will be initiated only if the interest for the 6 months are paid promptly.
There are two interst rates applicable to MFI Covid 19 loans. A discounted rate of 4.5% APR can be availed if businesses apply through their local enterprise office. If they apply directly to MFI, they can get a rate of 5.5% APR.
Gambling, Tobacco and any sectors with illegal activities cannot get loans through MFI.
Procedure
Register your micro enterprise at microfinanceireland.ie/covid19 or contact directly to the Local Enterprise office.
A Covid 19 Application form, Covid 19 business plan, cash flow forecast, Bank statement of 6 months and Central Credit Register Report are the needed documents which should be submitted.