SCBI – COVID -19 Loan Scheme

If you are a SME that has suffered a loss arising from COVID-19 business disruption you are eligible to apply for a SCBI Guaranteed loan via AIB, BOI or UB. Loans are 80% guaranteed up to €500k and have a deferred interest payment option. (Details on the loan product and eligibility included below)

How We Can Help

We can prepare the full application on the client’s behalf and submit to the Bank for review.  We will also meet the bank with the client and answer any questions they may have.  
Letter of engagement will need to be in place before work commences and 50% of our fees paid up front and 50% paid once the application has been submitted to the bank for processing.  It is important to note that we do not guarantee that the application will be successful.

The estimated fees to complete all the work below would be 5 days at €1,250 + vat per day (total €6,250 + vat), just on a time basis and there is a success fee of €2,500+vat for a successful drawdown. 

The Information will be requested by the bank will be the following.  This listing is probably on the higher end of requested information, but it is worthwhile collecting all information and having it to hand if requested.

  • Detailed Business Proposal
  • 3 years financial statements
  • 3 years projections to include P&L, Balance Sheet, Cashflow, Assumptions Applied
  • Management Accounts 
  • Creditors Listing as at DD/MM/YY (most recent) 
  • Debtors Listing as at DD/MM/YY (most recent)
  • Tax Clearance Certificate
  • Statement of Affairs for principals within the company
  • 3 Years Notice of Assessments for principals within the company
  • If you don’t bank with the applicant bank then 6 months personal bank statements for principals within the company
  • If you don’t bank with the applicant bank then 6 Months Bank Statements for the Applicant Company
  • Other relevant information may be requested by the bank if deemed necessary

As we have gone through this process with other clients we have first hand experience as a customer and professional adviser which is invaluable to assist clients in a successful application.  Also WDA has direct relationships with UB, BOI and AIB Corporate Finance Teams, which we can refer clients onto, which can help the application process.

To discuss your eligibility and to discuss proceeding with an application please contact us via: info@wda.ie or jdowling@wda.ie

Loan Information

The SBCI Covid-19  Working Capital Scheme is offered in partnership with the Department of Business Enterprise and Innovation, the Department of Agriculture Food and the Marine and is supported by the InnovFin SME Guarantee Facility, with the financial backing of the European Union under Horizon 2020 Financial Instruments.

The loans will be available through AIB, Bank of Ireland and Ulster Bank. Approval of loans are subject to the banks own credit policies and procedures. It should be noted that businesses cannot complete a loan application until they have received their eligibility letter from the SBCI.

Loan features

  • Loan amounts of between €25,000 to €1.5m per eligible enterprise (see the State Aid section below for further details).
  • Maximum interest rate of 4%.
  • Loan terms ranging from 1 year to 3 years.
  • Loans unsecured up to €500,000.
  • Optional interest-only repayments may be available at the start of the loans.
  • The loan amount and term is dependent on the loan purpose.

Loans can be used for

  • Future working capital requirements.
  • To fund innovation, change or adaptation of the business to mitigate the impact of Covid-19.

Loans cannot be used for

  • Refinance of undertakings in financial difficulties.
  • Refinance of existing debt (e.g. Terms Loans/Leases/Hire Purchase etc.).

Who can apply

Viable micro, small and medium sized enterprises (SMEs) and Small MidCap enterprises that meet the eligibility criteria.

SMEs are defined by the Standard EU definition [Commission Regulation 2003/361/EC] as enterprises that:

  • Have fewer than 250 employees
  • Have a turnover of €50 million or less (or €43 million or less on their balance sheet)
  • Are independent and autonomous i.e. not part of a wider group of enterprises
  • Have less than 25% of their capital held by public bodies
  • Is established and operating in the Republic of Ireland

A Small Mid-Cap is an enterprise that is not an SME but has fewer than 500 employees

Who cannot apply

SMEs/ Small Mid-Cap that: –

  • Are involved in the primary agriculture and/or aquaculture sector
  • Are in financial difficulty (excluding cashflow pressures caused by Covid-19 impact)
  • Are bankrupt or being wound up or having its affairs administered by courts
  • In the last 5 years has entered in to an arrangement with creditors, in the context of being bankrupt or wound-up or having its affairs administered by the courts
  • Are convicted of an offense concerning professional misconduct by judgement, fraud, corruption, involvement in a criminal organisation, money laundering or any other illegal activity where such illegal activity is detrimental to the European Union’s financial interests.

The Process

The application is very straightforward, once you have all the relevant information to hand. Takes about 10 – 15 minutes.

It will take 5 working days to receive an email from SBCI Applications Team which will contain an approval code stating you are eligible for SBCI Funding.  You then select an approved bank, AIB, BOI or UB and submit a full SME application and include the SBCI Approval Letter within same.
The next stage is to prepare a full business proposal with supporting financials and projections for the bank.  In addition a full SME loan application will need to be completed by the applicant company and submitted with all supporting documentation.