Useful information about eligibility

• Who can apply
  Viable micro, small and medium sized enterprises, SMEs and Small MidCap (that meet the eligibility criteria). SMEs are defined as enterprises that:
   

  • have fewer than 250 employees
  • have a turnover of €50 million or less (or €43 million or less on their balance sheet)
  • are independent and autonomous i.e. not part of a wider group of enterprises
  • have less than 25% of their capital held by public bodies
  • is established and operating in the Republic of Ireland

   

• Who cannot apply
  SMEs/Small Midcap enterprises that cannot apply:
  
  

  • are an undertaking in difficulty;
  • has a substantial focus on one or more Restricted Sectors including primary agriculture and or aquaculture sectors;
  • are delinquent or in default under any agreement with AIB or another financial institution;
  • are established in a Non-Cooperative Jurisdiction
  • are bankrupt or being wound up or having its affairs administered by the courts;
  • in the last 5 years has entered into an arrangement with creditors, in the context of being bankrupt or wound-up or having its affairs administered by the courts
     

   

• Eligibility criteria
  SMEs/ Small Mid-Cap, at the time of loan application must satisfy at least one of the Innovation criteria and the Covid-19 criterion: –

   

  Covid-19 Criterion

  There will be a reduction in business turnover by a minimum of 15% as a direct result of Covid-19

   

  Innovation Criteria

  Please note that an up to date business plan will be required to be provided to AIB in all cases when applying for an SBCI Scheme Loan.

   

  The other documents detailed in No. 3, 4, 5, 6, 7, 8, 10, 11 will be required to be provided to the SBCI as part of the Eligibility Application Form.

   

  1. At least 80% of the Scheme Loan will be spent on research and innovation activities with the remainder on costs necessary to enable such activities.

  Evidence required from applicant: The business plan given to AIB must reflect the details of the expenditures and activities to be undertaken.

   

  2. You intend to enter a new product or geographical market, and the required investment is higher than 50% of average annual turnover in the preceding 5 years.

  Evidence required from applicant: The business plan given to AIB must reflect details of the expenditures.

   

  3. You will have registered at least one technology right in the last 24 months and the purpose of the loan is to enable use of this technology right.

  Evidence required from applicant: Evidence of technology right e.g. patent, utility model, design right, protection certificates.

   

  4. You are an SME and research and innovation costs represent at least 10% of total operating costs in at least one of the last three years preceding this loan application, or in the case where there is no financial history, as per current financial statements.

  Evidence required from applicant: Costs to be certified in a letter by an accountant practising in the Republic of Ireland

   

  5. You are a Small Mid-Cap and research and innovation costs represent either:

  at least 15% of total operating costs in at least one of the three years preceding this loan application
  at least 10% per year of total operating costs in the three years preceding this loan application.

  Evidence required from applicant: Costs to be certified in a letter by an accountant practising in the Republic of Ireland

   

  6. You have been awarded a Research and Development or Innovation prize by an EU Institution or EU Body over the last 24 months.

  Evidence required from applicant: Appropriate evidence of prize.

   

  7. You have received a grant, loan or guarantee from a European research and innovation scheme (e.g. Horizon 2020 or FP7) or regional/national research or innovation support scheme in the last three years, and are confirming that the Scheme Loan is not covering the same expense.

  Evidence required from applicant: Appropriate evidence of the grant, loan or guarantee.

   

  8. You are an early stage SME and have received an investment over the last 24 months from a venture capital investor, business angel.

  Evidence required from applicant: Appropriate evidence of the investment to be provided.

   

  9. You intend to use the loan to invest in producing, developing or implementing new or substantially improved products, processes or services or production or delivery methods (including business models) that are innovative, and where there is a risk of technological, industrial or business failure as evidenced by an external expert.

  Evidence required from applicant: The business plan must demonstrate those risks of failure and be evaluated by an external expert e.g. an accountant, engineer, your Bank.

   

  10. You are a “fast growing enterprise“ operating for less than 12 years with an average annualised employee or turnover growth greater than 20% a year, over a three-year period and with ten or more employees at the beginning of that period.

  Evidence required from applicant: Evidence to be certified by an accountant practising in the Republic of Ireland.

   

  11. You are operating in a market for less than seven years and research and innovation costs represent at least 5% of total operating costs in at least one of the three years preceding the loan application or in the case of an enterprise (and particularly a start-up) without any financial history, according to current financial statements.

  Evidence required from applicant: Costs to be certified in a letter by an accountant practising in Republic of Ireland.
• How to apply
  1. Review the Eligibility Criteria to assess if your business is eligible for a loan under the SBCI Covid-19 Working Capital Scheme.
  2. Complete the Eligibility Application Form and submit to SBCI – online form and full details can be found on the SBCI Website
  3. Eligible SMEs will receive a confirmation letter from SBCI with a reference number (which is valid for 6 months)
  4. Contact your Branch, Relationship Manager or call Direct Business Advisors on 0818 47 88 33 with your reference number to begin your loan application.

   

  Note: Confirmation of scheme eligibility does not guarantee credit approval; Customers will be required to submit a standard business loan application to the Bank.

   

  The SBCI require a business plan to be provided along with your loan application to AIB. SBCI have guidance on their website for Covid-19 applications

   
• State aid
  SBCI, which is a state body, provides support for the scheme which allows a reduced interest rate to be applied. In some cases, this reduction in rate may be classified as State Aid.

   

  Loan amounts and term are dependent upon State Aid thresholds – SMEs are subject to De Minimis State Aid thresholds, provided such Aid does not exceed €200,000 in any 3-year fiscal period. Borrowing under this scheme will give rise to State Aid benefit, and hence there may be a restriction on the loan amount/loan term that can be availed of by the borrower. It is important to note that the State Aid is not the amount of the loan.

   

  Full details can be found on the SBCI Website.