Ukraine Credit Guarantee

The Ukraine Credit Guarantee Scheme is closed to new applications.

Many businesses have been affected by global economic challenges. They are facing increasing costs, particularly for energy, and are going through supply chain disruptions. That is why we have partnered with the Strategic Banking Corporation of Ireland (SBCI) to bring you a loan under the Ukraine Credit Guarantee Scheme.

This Scheme is made available by the Department of Enterprise, Trade and Employment and the Department of Agriculture, Food and the Marine and operated by the SBCI, further details can be found on the SBCI Website.

Key features

A variable interest rate.
Loan amounts from €10,000 to a maximum aggregated loans of €1 million.
Loan terms from three months up to five years and six months.
No security needed for loans up to €250,000.
Loan are available for:
- Working Capital;
- Investment.
Loans are for businesses that have experienced an increase in costs of at least 10% on their 2020 cost figures because of global economic challenges.
Loans are available up to 31 December 2024 or until the scheme has been fully subscribed. (Note: Customers must return the signed Letter of Sanction to us by 31st December 2024)

The Scheme at a Glance

Variable interest rate.
Loan amounts from €10,000 - €1,000,000.
Terms from three months to five years and six months.

Interest Rate

The interest rate on loans up to €300,000 is the SME Variable Business Loan¹interest rate minus a margin of 1% plus the applicable premium.

The interest rate on loans of €300,001 and above is the SBCI Variable Rate Loan interest rate² plus a margin of 2.12% plus the applicable premium.

We add a premium to the margin of the loan which we will pay to the Minister for Enterprise, Trade and Employment.

The interest rate reflects the benefit of the 80% State guarantee of the loan to AIB.

¹ The SME Variable Business Loan interest rate is a variable interest rate which may change. The SME Variable Business loan interest rate is published on this website.

² The SBCI Variable Rate Loan interest rate is a variable interest rate which may change. The SBCI Variable Rate Loan interest rate is set weekly and published on this website.

Information on the premium for the Ukraine Credit Guarantee Scheme

Customers have to pay a premium on all loans. We collect it and pay it to the Minister for Enterprise, Trade and Employment.

The premium is part of the loan repayments and must be paid when it falls due. We treat the premium as we do loan repayments, which means we have the right to ask customers to repay the loan in full if they have not made loan repayments inclusive of the premium.

The premium we charge is based on the term of the loan and the type of business (Small or Medium Enterprise (SME) or a Small Mid Cap Enterprise).

We calculate the premium payable on the outstanding balance of the loan in accordance with the table below.

SME
Terms of Facility (Years)	Premium
Equal to or shorter than 3 years	[0.29%]
Equal to or shorter than 6 years but longer than 3 years	[0.68%]

Small Mid-Cap
Term of Facility (Years)	Premium
Equal to or shorter than 3 years	[0.73%]
Equal to or shorter than 6 years but longer than 3 years	[1.55%]

Here is an example of how we apply the premium:

For example: A SME business borrows €100,000 over 5 years and repays monthly. The loan has a premium of 0.68%. The premium amount for the first month is €56.66. (€100,000 x 0.68%/12).

For example: A Small Mid-Cap business borrows €100,000 over 5 years and repays monthly. The loan has a premium of 1.55%. The premium amount for the first month is €129.16. (€100,000 x 1.55%/12).

Repayment Options

There are repayment options available. You can make standard capital and interest repayments, or you can take a capital and interest moratorium or pay interest-only for up to three months at the start of your loan.

Standard capital and interest repayments

For example: A SME business borrows €100,000 over 3 years at 5.24% (SME Business Variable Interest Rate 5.95% at 7^th June 2023 minus 1% Margin Plus 0.29 Premium) would have monthly repayments of €3,000.26. The total cost of credit would be €8,009.36 and the total amount repayable is €108,009.36.

For example: A SME business borrows €60,000 over 4 years at 5.63% (SME Variable Business Rate 5.95% at 7^th June 2023 minus 1% margin plus 0.68% premium) with an initial interest-only payment of 90 days. This loan will have initial repayments of €276.81 for the first 3 months and €1,478.15 for the months thereafter. The total cost of credit for the loan is €7,347.18 with total repayments of €67,347.18.

Interest-only followed by capital and interest repayments

This is a period at the start of the loan where customers pay only the interest charged on their loan. Standard capital and interest repayments will be higher as a result when the interest-only period ends. Interest-only loans result in a higher cost of credit.

For example: A SME business borrows €60,000 over 4 years at 5.63% (SME Variable Business Rate 5.95% at 7^th June 2023 minus 1 margin plus 0.68% premium) with an initial interest-only payment of 90 days. This loan will have initial repayments of €276.81 for the first 3 months and €1,478.49 for the months thereafter. The total cost of credit for the loan is €13,007.34 with total repayments of €73,007.34.

Moratorium followed by capital and interest repayments

A moratorium means that customers won’t pay any interest or capital on their loan during the period of the moratorium. When the moratorium ends repayments over the remaining term of the loan will be higher and the cost of credit will be higher.

For example: A Small Mid Cap business borrows €20,000 over 3 years at 5.68 % (SME Business Variable Rate 5.95% at 7^th June 2023 minus 1% margin plus 0.73% premium) with an initial moratorium of 90 days. This loan will have 33 repayments of €663.56. The total cost of credit for the loan is €1,897.48 with total repayments of €21,897.48.

These cost of credit examples include the premium payable for participating in the Scheme.

More information about who the Ukraine Credit Guarantee Scheme loan is suitable for.

To apply for a Ukraine Credit Guarantee Scheme loan customers must be a viable micro enterprise, small or medium sized enterprise (SME), Small Mid-Cap enterprises or Primary Producer.

A Micro Enterprise is defined as:
- having fewer than 10 employees
- having a turnover and/or balance sheet of €2 million or less
An SME is defined by the Standard EU definition [Commission Regulation 2003/361/EC] as an enterprise that:
- has fewer than 250 employees
- has a turnover of €50 million or less (or €43 million or less on their balance sheet)
- is independent and autonomous that is, not part of a wider group of enterprises
- has less than 25% of their capital held by public bodies
A Small Mid-Cap is an enterprise that is not an SME but has fewer than 500 employees.

A Primary Producer is a person who is engaged in the production, rearing or growing of primary products including harvesting, milking and farmed animal production prior to slaughter. It also includes hunting and fishing and the harvesting of wild products.

In addition, in order to be eligible for the Scheme, the business must be both established and operating in the Republic of Ireland.
Some of the excluded sectors are listed below, see full list of Excluded and Restricted Sectors here.

MINING AND QUARRYING

Extraction of crude petroleum

Extraction of natural gas

Support activities for petroleum and natural gas extraction

MANUFACTURING

Manufacture of tobacco products

Manufacture of weapons and ammunition

Manufacture of military fighting vehicles

CONSTRUCTION

Construction of buildings

Construction of residential and non-residential buildings

REAL ESTATE ACTIVITIES

Buying and selling of own real estate

ARTS, ENTERTAINMENT AND RECREATION

Gambling and betting activities

FINANCIAL AND INSURANCE ACTIVITIES

Monetary intermediation

The Department of Enterprise, Trade and Employment reserve the right to review the list of excluded sectors during the operation of the Scheme.
Customers:
- applying to refinance existing debt;
- financing the purchase of agricultural land;
- in financial difficulty;
- in excluded sectors or have a substantial focus in any of the restricted sectors;
- that are in arrears on any existing lending agreement with AIB;
- that are bankrupt or being wound up being administered by the courts;
- subject to, or under domestic law being placed in collective insolvency proceedings.

Other resources

Helpful Guide to Applying for Business Finance

T&C’s Governing Business Lending

Important / Regulatory Information

Lending Criteria, terms and conditions apply. Credit facilities are subject to repayment capacity and financial status and are not available to persons under 18 years of age. Security may be required.

Ukraine Credit Guarantee Scheme – Term Loan