Ukraine Credit Guarantee Scheme – Term Loan
Loans for customers in business and agriculture affected by economic challenges from the Russian invasion of Ukraine.
Many businesses have been affected by the Russian invasion of Ukraine. 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.
- Working Capital;
- Loans are for businesses that have experienced an increase in costs of at least 10% on their 2020 cost figures because of the Russian invasion of Ukraine.
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 Loan1 interest 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.
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 7th 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 7th 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 7th 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 7th 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.
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Who can apply?
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.
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How to apply
Step 1 - First, apply for a SBCI Eligibility Code from the SBCI through their online hub which can be accessed here.Step 2 – Once you have received your SBCI Eligibility Code from the SBCI you can fill out our SBCI Lending Scheme Online Enquiry Form.
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Under Scheme rules, customers in some sectors are excluded from applying:
Some of the excluded sectors are listed below, see full list of Excluded and Restricted Sectors here.
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State aid
The Ukraine Credit Guarantee Scheme currently operates under the EU “Temporary Crisis Framework” (TCF) for state aid measures to support the economy following the Russian invasion of Ukraine.
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Who cannot apply
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.
We're here to help
| 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 |
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.
