The COVID-19 Credit Guarantee Scheme Term Loan is a variable rate loan for businesses who have been impacted by COVID-19.

The Scheme will be available until December 2020 on a first-come, first-served basis. The Scheme is made available by the Department of Business, Enterprise and Innovation and operated by the Strategic Banking Corporation of Ireland (SBCI), further details can be found on the SBCI Website.

Key features

  • Loans offered under the Scheme are for terms of between one and five and a half years.

  • A Guarantee for a percentage of the loan is provided for facilities from €10,000 to €1 million. The aggregate of all facilities granted to a particular qualifying/participating enterprise may not exceed €1 million.

  • The Scheme is aimed to help businesses that have experienced an adverse impact of a minimum of 15% in actual or projected turnover or profit, due to the impact of COVID-19.

  • Eligible purposes under the Scheme include:
    • Working Capital;
    • Investment
    • Refinance of existing COVID-19 related debt; 
      • Refinance of non-COVID-19 related debt is not permitted under the Scheme
         
  • No security will be required for loans up to €250,000.

  • The interest rate on this loan is the SBCI Variable Interest Rate (currently 0%) plus:
    • a maximum margin of 2.75% on loans.

  • ·A CGS Loan of €25,000 over 5 years at 2.75% will have 60 monthly repayments of €446.17. The total cost of credit is €1,770.06, total amount repayable for the loan is €26,770.06.
This cost of credit example does not include the premium you will be required to pay for participating in the Scheme

What else you should know

  • A Premium payment is to be made to participate in the Scheme. This Premium is payable to the Minister for Business, Enterprise and Innovation and is collected by AIB on behalf of the Minister. More information on the Premium is available below.

  • The provision of the Scheme Guarantee does not remove any liability for the credit from the Customer.

  • As part of your application, you will need to submit your business’s audited/certified accounts and if not available then, your business’s latest management accounts or in certain exceptional cases, your business’s relevant business current account statements.

  • The amount you can borrow is based on:
    • 25% of your total 2019 business turnover; or
    • Double your annual wage bill.
In exceptional cases you can request to borrow an amount that is greater than the above criteria. In these exceptional cases a copy of the Business Current Account Statements can be accepted if you are a Micro Enterprise or Primary Producer.  (definitions available under ‘who can apply’.)

If so please you can talk to our Specialist Team on 0818 227 058.
business

Enquire here

If you’re an AIB business customer impacted by COVID-19, fill out this enquiry form to find out which SBCI Scheme may suit your business needs.

At a glance

  • SBCI Variable Interest Rate (currently 0%) plus a maximum margin of 2.75% 
  • Loan amounts from €10,000-€1,000,000
  • Terms from 1 up to 5 and a half years

COVID-19 Credit Guarantee Scheme Premium


As Facilities under the COVID-19 Credit Guarantee Scheme benefits from a guarantee, you will need to pay a Premium on the Facility. 
The Premium is collected by AIB on behalf of the Minister for Business, Enterprise and Innovation.

The Premium will be charged in line with the facility repayments and must be paid when it falls due. Non-payment of the Premium can result in a customer being deemed in default of the loan.

Without limiting any of our rights, if a customer fails to make a payment of Premium when it is due, we may, at our discretion demand early repayment of the Facility in full.

The Premium charged is based on the term of the facility and whether the customer is a Small or Medium Enterprise (SME) or a Small Mid Cap Enterprise.

The following table outlines the Premium applicable to loans of different terms. The amount of the Premium differs if you are an SME or a Small Mid-cap. 

 

SME  
Term of Facility (Years) Premium (per year)
Longer than 5 years 0.68%
Equal to or shorter than 5 years but longer than 4 years 0.61%
Equal to or shorter than 4 years but longer than 3 years 0.50%
Equal to or shorter than 3 years but longer than 2 years 0.29%
Equal to or shorter than 2 years but longer than 1 year 0.26%
Up to and including 1 year 0.15%

 

Small Mid-cap  
Term of Facility (Years) Premium (per year)
Longer than 5 years 1.55%
Equal to or shorter than 5 years but longer than 4 years 1.40%
Equal to or shorter than 4 years but longer than 3 years 1.19%
Equal to or shorter than 3 years but longer than 2 years 0.73%
Equal to or shorter than 2 years but longer than 1 year 0.63%
Up to and including 1 year 0.30%

The Premium payable on the Outstanding Balance of the Facility will be calculated in accordance with the table above.

The Premium on the Outstanding Balance will be payable on each of the dates that repayment instalments of the Facility are due to be made.

The amount of Premium payable will be calculated by us 7 days before the first repayment instalment of the Facility is due to be made and thereafter, calculated no later than 4 days before each subsequent repayment of the Facility. The calculation of the Premium will be based on the aggregate of:

A. the Outstanding Balance on the Facility on the date the calculation is made, multiplied by
B. the annual premium rate referenced in the table above which is relevant to the Facility, divided by the chosen frequency of the repayment (i.e. for a monthly repayment, divided by 12). An example of how the Premium is applied is set out below:


Examples 
A loan to an SME customer of €25,000 over 5 years will have a Premium of 0.61% applied. The total cost of this Premium over the life of the loan will be €395.39.
A loan to a Small Mid-Cap customer of €25,000 over 5 years will have a Premium of 1.40% applied. The total cost of this Premium over the life of the loan will be €907.45

Repayment Options 

Under the Scheme, you can make standard Capital and Interest Repayment or you can avail of a Capital and Interest Moratorium or an Interest only repayment period up to 12 months at the start of your loan.
 
Interest Only period followed by Capital & Interest repayments
This is a period at the start of the loan where you only pay the interest charged on your loan. Please note your standard Capital and Interest repayments will be higher as a result of this when the interest only period ends. If you avail of an Interest Only period at the start of your loan, your total cost of credit will be higher as a result.
 
For example a CGS Loan of €25,000 over 5 years at 2.75% with an interest only period will have 12 monthly repayments of €57.20 followed by 48 monthly repayments of €550.57. The total cost of credit is €2,113.76, total amount repayable for the loan is €27,113.76*
 
Moratorium followed by Capital & Interest repayments 
A moratorium means that you won’t pay any interest or capital on your loan during the period of the break. When the moratorium ends your repayments over the term of your loan will be higher as a result. If you avail of a moratorium period during your loan, your total cost of credit will be higher due to this.
 
For example a CGS Loan of €25,000 over 5 years at 2.75% with a 3 month payment break will have 57 monthly repayments of €471.56. The total cost of credit is €1,878.92, total amount repayable for the loan is €26,878.92*
 
These cost of credit examples do not include the premium you will be required to pay for participating in the Scheme

Useful information about eligibility for The COVID 19 Credit Guarantee Scheme Term loan

It is important to note that a credit application must be processed in the normal way first and assessed under its own merits before eligibility for the scheme is considered.

We're here to help

Contact your Branch, Relationship Manager or our SBCI team on 0818 227058, Monday to Friday 9:00 to 17:00.

WARNING: The entire amount you have borrowed will still be outstanding at the end of the interest-only period
WARNING: The cost of your repayments may increase

Other resources

Credit Guarantee Scheme Information Booklet

Helpful Guide to Applying for Business Finance

Government Credit Guarantee Scheme FAQs

T&C’s Governing Business Lending

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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.