TRALEE, Ireland–Cara Credit Union is the latest CU here to be approved to participate in a new Brexit Impact Loan Scheme (BILS) for Irish businesses, which is run by the government owned-owned Strategic Banking Corporation of Ireland (SBCI).
Cara CU is one of five large credit unions that are all members of Metamo and which have been approved to offer loans within the new scheme. Metamo is a joint venture between 16 of Ireland’s largest Credit Unions and the financial services company FEXCO, according to the Independent.
The program was launched in July 2019 with the “aim of supporting credit union viability and sustainability by providing an enhanced range of services and helping with support in key areas such as lending, risk management and technology delivery,” the Independent reported.
All of the Metamo members that have been selected to offer loans under the program will be able to use the funds to assist micro businesses, small businesses and primary producers that have been affected by the impact of Brexit.
The Metamo Credit Unions will be the only community-based lenders within the scheme, the Independent stated. Cara Credit Union will be able to offer loans to firms and producers that rely on the U.K. for at least 15% of their imports or exports.
The Independent said the minimum loan value is €25,000, and the loans will have a term of between one year and six years.
“The approval decisions for the new loans will be made at local community level by credit union staff who know the businesses in their locality and who can access best-in-class support from Metamo’s centre of excellence,” according to the report.
A ‘Vital Role’
Joe O’Toole, chair of the Metamo Credit Union Group, told the Independent the group is delighted that the government has approved five Metamo credit unions as the first community-based lenders to participate the scheme.
“These short to medium-term loans will play a vital role in helping micro, small, and medium enterprises and primary producers to deal with the financial impact of Brexit on their respective businesses,” he told the Independent.
The Independent noted the Metamo Group of 16 credit unions have a combined lending base of more than €1 billion.
Metamo’s participation in the new BILS is one of several initiatives that the Group is undertaking to further develop its ability to serve the needs of its members and the business community, the report added.