BOI fund aids growth of food firms
The €50 million loan fund was launched in June 2003 to specifically fund development activity by small and family-owned companies in the prepared foods and beverage sector.
Demand has been high since the fund was launched, with over €500,000 per week borrowed.
The fund is part of Bank of Ireland’s overall strategy to grow its presence in the SME market by introducing initiatives and products designed for specific trade sectors.
This fund is part of BOI Business Banking’s food industry programme, which also includes a number of initiatives launched in conjunction with Bord Bia.
These include briefings by Bord Bia to the bank’s key business managers to further develop their knowledge and expertise of the food sector.
Dermot Nolan, head of business marketing with the bank, said the demand for the fund confirms the rapid growth of the prepared food sector, reflecting changing lifestyles and consumer demand.
Half of the fund is still available to small indigenous food and beverage companies keen to develop and expand their businesses.
“We are well positioned through our knowledge and association with Bord Bia to offer expert financial advice and guidance to Irish companies in this expanding sector,” Mr Nolan said. “We will increase the fund, once this allocation is complete, to meet the development demands of indigenous Irish food and drinks companies,” he said.
John McGrath, consumer foods and marketing director, Bord Bia, said the demand for this fund showed companies in the prepared food and beverage sector recognise the need for constant development to meet consumer demands.
Investment is being facilitated by the availability of finance, which is allowing companies to exploit growth opportunities. This is consistent with the Bord Bia strategy of broadening opportunities for sustained growth in Irish food and drink exports, he said.
