Emergency loan supports for small firms are too slow and difficult to access

THE Government’s emergency loan supports for small firms are too slow and difficult to access and should not be channelled only through pillar banks. Figures show only an €11m drawdown to 56 firms from the Government’s initial €200m pool of emergency capital to small and medium-sized enterprises (SMEs).

The Covid-19 Working Capital Scheme, launched on March 10, allows SMEs to seek loans of up to €1.5m via AIB, Bank of Ireland or Ulster Bank. First they must be deemed eligible by the Strategic Banking Corporation of Ireland, then go through a traditional loan application.

The scheme includes Government underwriting of unsecured loans of up to €500,000. Terms include potential seven- year repayments with interest rates capped at 4pc.