Small businesses across Laois & Offaly should apply for a new loan to help them prepare for Britain’s exit from the single market and customs union at the end of this year, according to local TD, Charlie Flanagan.
Deputy Flanagan said Brexit will be challenging for businesses and they want to be prepared.
“The new Microfinance Ireland (MFI) Brexit Business Loan, will provide up to €25,000 to businesses whose turnover already is or is likely to fall 15% or more or if the business has a short term cashflow need as a result of Brexit. Loans are available for between six months and three years.
“Any business, including a Sole Trader, Partnership or Limited Company, with less than ten employees and an annual turnover of up to €2 million can apply, where they are unable to secure finance from a bank or commercial lending provider.
“Businesses across Laois & Offaly can apply through their Local Enterprise Office Network or can apply directly to Microfinance Ireland (MFI).
“There are less than 50 days until the end of the transition period on 31 December. It is urgent that all businesses large and small in the constituency now revisit their readiness plans.
“From 1 January, the UK will no longer apply the rules of the EU’s Single Market and Customs Union. This means that any business that moves goods from, to or through Great Britain will be subject to a range of customs formalities, SPS checks and other regulatory requirements that do not apply to such trade today.
“There is now an extensive range of training material and information available online on the Government’s new Brexit Information Hub to help businesses prepare for Brexit and the lasting change that it will bring. The hub can be accessed via Gov.ie/getbrexitready,” he said.
He welcomed the opening of this new scheme by the Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar.
Loans from €5,000 – €25,000*
Loan Terms from six months to three years** (shorter terms depending on purpose)
Interest rate of 4.5% APR if submitted through the Local Enterprise Office Network or other referral partners, or 5.5% APR if you apply directly
No fees/charges or any hidden costs
Fixed repayments with no penalty for early repayment
* The maximum credit exposure for all MFI borrowings is €25,000
**Depending on the term of the loan, interest only repayments for three months may apply in line with our standard products
Who can apply?
Any business* (Sole Trader, Partnership or Limited Company) with less than 10 employees and annual turnover of up to €2m
Unable to secure finance from a Bank or commercial lending provider
Business turnover is or potentially could be impacted by a minimum of 15% or the business has a short term cashflow need as a result of Brexit.
* While Businesses involved in Alcohol Production are deemed to be an excluded sector for MFI Loans, they are eligible to apply for an MFI Brexit Loan