DUBLIN, Ireland–Seven of Ireland’s largest credit unions and three non-bank lenders have signed up to participate in the government’s €2 billion COVID-19 Credit Guarantee Scheme.
Participating credit unions include Cara Credit Union, Mallow CU, First Choice Credit Union, People First CU, St. Canice’s Credit Union, Limerick & District CU and Synergy Credit Union, according to the Irish Times. The seven CUs have 250,000 members between them and are all members of Metamo, a joint venture between credit unions and Fexco.
The program, officially launched in September of 2020 through three banks, offers an 80% government guarantee to participating lenders to provide Irish businesses, including those in the farming and fishing sectors, with access to low interest loans as they respond to the impacts of COVID-19, the Times reported.
Non-bank lenders Linked Finance, CapitalFlow and Finance Ireland have also been approved to offer loans through the credit guarantee scheme.
‘Muted Demand’
Loans of up to €1 million are available for up to 5.5 years through the plan, though individual lenders may set lower limits. No personal guarantees or collateral is required for loans under €250,000.
“However, demand for loans to date has been muted as businesses have been reluctant to take on additional credit amid heightened uncertainty,” the Times reported.
Some 2,249 loans, totaling €118 million, have been drawn down by SMEs as of January 7th, a spokesman for the Strategic Banking Corp. of Ireland told the Times. Strategic Banking Corp. is overseeing the guarantee scheme.