€15m loan fund launched to help micro-businesses impacted by Covid

Companies with less then 10 employees access loans of between €5,000 and €25,000. Picture: File photo

A new €15 million fund has been launched to help micro-businesses impacted by Covid-19.

It means companies with less then 10 employees access loans of between €5,000 and €25,000.

There are to be no repayments or interest over the first six months while the following six months interest will be refunded by government.

"This particular fund is for existing businesses that can show a negative impact of 15% downturn in their turnover or profitability," said Garrett Stokes, chief executive of Microfinance Ireland.

Speaking today Tánaiste Leo Varadkar said: "This Fund has proven to be a lifeline for micro-enterprises over the past few months, where we’ve seen nearly 700 businesses with fewer than ten employees avail of it.

"We’ve set out a really significant financial package in the July Stimulus and this loan scheme is another way we’re helping businesses to re-open, stay afloat or expand.” 

The Covid-19 Loan scheme has seen a strong uptake in recent months with €18.6 million sanctioned to 683 businesses up to 31 July.