This afternoon.

One for Larry.

One for Denis.

None for you.


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3 thoughts on “Two Big Ones

  1. Cian


    This guarantees loans of between €10K and €1M for SMEs (up to 499 employees).
    This could help between 2,000 and 200,000 companies (depending on loan size).

    Features of the COVID-19 Credit Guarantee Scheme
    – This is a scheme for SMEs, Primary Producers and small Mid-Caps (defined as businesses with up to 499 employees). SMEs are expected to be the main beneficiaries.
    – In order to qualify for the Scheme, the borrower will have to declare an adverse impact of minimum 15% of actual or projected turnover or profit due to the impact of COVID-19.
    – The amount available under the COVID-19 CGS is €2 billion.
    – A guarantee rate of 80% for the State with the lenders retaining 20% of the risk of the loan.
    – The removal of any portfolio cap for individual lenders. A portfolio cap has been a feature of previous CGS. However, the removal of the cap for the COVID-19 CGS is essential in order to ensure lenders provide an interest rate reduction to borrowers and also comply with the Capital Requirements Regulation.
    – The current standard facility size of €10k to €1 million under the current Acts will remain for the COVID-19 CGS.
    – The products covered under the scheme will include a broad range of credit facilities including overdrafts, working capital and term loan facilities.
    – Capital and/or interest moratoria for specific periods of time (up to one year) will be permitted under the Scheme but any decision regarding such moratoria will be at the discretion of the individual lender based on their assessment of their customer.

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