ILCU proud to support credit unions taking part in the Covid-19 Credit Guarantee Scheme
Posted on: 25 Jan 2021
The ILCU has today welcomed the announcement that a number of its credit unions have been included in the Covid-19 Credit Guarantee Scheme which supports small and medium Irish businesses that have been impacted by Covid-19. The scheme, made available by the Department of Enterprise, Trade and Employment and operated by the Strategic Banking Corporation of Ireland provides support for businesses who have experienced an adverse impact as a result of Covid-19.
Key Features of the Scheme:
• It’s aimed at supporting local businesses that have been impacted by Covid-19
• To be eligible, businesses must have seen or expect to have min. 15% reduction in turnover/ profits due to Covid-19
• Interest rates will be lower than the standard rate available to businesses
• Loan terms from 3 months to 66 months available
• A guarantee premium payable to the government will apply
• The scheme is open until 30th June 2021 or until fully subscribed
The ILCU affiliated credit unions with combined assets of c. €1.2 billion who are involved in the scheme are Carrickmacross Credit Union, Castlecomer Credit Union, Clonmel Credit Union, Connect Credit Union, Mullingar Credit Union, Progressive Credit Union, Tower Credit Union, and Westport Credit Union.
ILCU CEO, Ed Farrell said “We are very pleased that ILCU affiliated credit unions are taking part in the Covid-19 Credit Guarantee Scheme. The past year has been an extremely challenging one for businesses and there are still many challenges ahead. Securing access to credit is now even more important for businesses and through this scheme, credit unions will be in a position to help provide local businesses with the access and supports they need to get back trading. Credit unions are at the heart of the community and we recognise the importance of local businesses and how important this scheme will be to them.”
The Tánaiste and Minister for Minister for Enterprise, Trade and Employment, Leo Varadkar TD, said “Credit Unions are at the very centre of communities across the country. They have an excellent reputation in their local areas and understand the needs of their customers. Their inclusion will help further diversify the options available to small business under this Scheme.”
Minister of State at the Department of Finance, Séan Fleming said “I welcome today’s announcement that credit unions, supported by the Irish League of Credit Unions (ILCU) will be participating in the COVID-19 Credit Guarantee Scheme, bringing the total number of credit unions in the scheme to nineteen. With their unrivalled local knowledge, credit unions are ideally placed to support the recovery and providing loans to local businesses is a key element of the recovery. Further development of SME lending in a controlled manner could also assist credit unions in growing and diversifying their loan book.”
Minister for Agriculture, Food and the Marine Charlie McConalogue TD said “I am delighted with the addition of credit unions to the COVID-19 Credit Guarantee Scheme. As well as providing a greater choice of lenders for farmers, fishers and food businesses, it will benefit rural communities, which continue to be well-served by the credit union movement. At this time of economic disruption, access to finance is critical to ensuring the ongoing viability of businesses, including those in the agri-food sector and I am pleased that my Department is supporting this initiative.”
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