Finance to help prepare for Brexit

Anti-Brexit campaigners wave Union and European Union flags outside the Houses of Parliament, London. Picture: PA

A new scheme to help small businesses prepare for Britain’s exit from the single market and customs union has been launched by the Government.

The new Microfinance Ireland (MFI) Brexit Business Loan will provide up to €25,000 to businesses whose turnover already has fallen, 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 with fewer than 10 employees and an annual turnover of up to €2m which is unable to secure finance from a bank or commercial lending provider can apply. 

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.

The interest rate is 4.5% if the application is submitted through the Local Enterprise Office network or other referral partners, or 5.5% if businesses apply directly.

Business preparation

The Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar, said Brexit feels like another body blow for small businesses already dealing with Brexit.

"This new loan is just one of the ways we are helping business to prepare," Mr Varadkar said.  

"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.

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

MFI CEO Garrett Stokes said businesses need to urgently start planning for the consequences of Brexit. 

"While the impact will be greatest on exporters, importers need to determine their supply chain and source of imports and plan for any delays or changes required," he said. 

"Many businesses will be negatively impacted by Brexit or suffer a short-term cashflow impact. 

"The Microfinance Ireland Brexit loan is ideally suited for businesses with these needs.”