Small businesses in Kilkenny urged to apply for new local-cost Brexit loans

Small businesses in Kilkenny who need help to prepare for Britain’s exit from the Single Market and Customs Union at the end of this year can now apply for low-cost loans of between €5,000 and €25,000.

The new Microfinance Ireland (MFI) Brexit Business Loan Scheme was announced by Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar this morning.

Kilkenny TD John Paul Phelan urged local businesses who will be impacted by Brexit to avail of the low-cost loans.

Deputy Phelan said: “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 cash-flow need as a result of Brexit.  Loans are available for between six months and three years.

“A favourable interest rate of 4.5% APR will apply to SME’s if the submit their application through the Local Enterprise Office Network or other referral partners. A 5.5% APR if you apply directly. No fees or charges or any hidden costs apply and there will be no penalty for early repayment.”

Deputy Phelan said any business, be it a Sole Trader, Partnership or Limited Company with less than 10 employees and annual turnover of up to €2 million, can apply, particularly if they are unable to secure finance from a Bank or commercial lending provider. Other eligibility criteria apply and further details are available from Kilkenny Local Enterprise Office.

“If you are a business owner and are wondering where to start, I’d recommend filling out our Brexit Readiness Checker first https://www.prepareforbrexit.com/brexitreadinesschecker/ and having a look at what needs to be done in your business. Then please reach out and use the help that’s there.”

Tánaiste Leo Varadkar added: “I know it’s been a really hard year, especially for our small, local businesses and imminent Brexit feels like another body-blow on the way. This new loan is just one of the ways we are helping business to prepare.

“It will provide low cost finance of up to €25,000 and business owners can apply through MFI.  77% of MFI’s lending is to businesses outside of Dublin, which is important as businesses all over Ireland will feel the negative effects of Brexit.”