Ukraine Credit Guarantee Scheme

“Participating Enterprise Eligibility Criteria” means, with respect to a Participating Enterprise at or immediately prior to the time the Participating Enterprise enters into a Qualifying Finance Agreement, the following criteria:

(a) the Participating Enterprise is established in Ireland;

(b) the Participating Enterprise is a viable business;

(c) the costs incurred by the Participating Enterprise have risen by a minimum of 10% (ten per cent) over its costs for 2020 due to the economic difficulties resulting from the invasion of Ukraine by Russia;

(d) the principal business activity carried on by the Participating Enterprise is not within an Excluded Sector; and

(e) the credit rating of the Participating Enterprise satisfies the minimum requirements set out at Schedule 5;

“Qualifying Finance Agreement Eligibility Criteria” means, with respect to a Qualifying Finance Agreement, the following criteria:

(f) the Credit Amount under such Qualifying Finance Agreement is not less than €10,000 nor greater than the limit imposed on the maximum Credit Amount that may be made available to a Participating Enterprise pursuant to clause 10.3(k);

(g) the term of such Qualifying Finance Agreement is not less than three months, nor more than six years;

(h) the Qualifying Finance Agreement is entered into on or before 31 December 2024;

(i) the Qualifying Finance Agreement requires the Credit Amount made available thereunder to be paid or repaid in full within six years from the date of such Qualifying Finance Agreement and in any event by no later than 31 December 2030;

(j) the interest rate (or equivalent) charged by the Finance Provider with respect to such Qualifying Finance Agreement reflects the applicable Pricing Discount;

(k) the Qualifying Finance Agreement requires that the finance provided to the relevant Participating Enterprise under such Qualifying Finance Agreement is for working capital or investment purposes;

(l) the Qualifying Finance Agreement requires that the finance provided to the relevant Participating Enterprise under such Qualifying Finance Agreement may not be utilised to refinance existing financial indebtedness;

(m) the Qualifying Finance Agreement may not be a covered finance agreement under any Covid-19 Bilateral Guarantee Agreement;

(n) save in the case of an asset credit facility agreement or an invoice finance facility agreement, if such Qualifying Finance Agreement provides for a Credit Amount less than or equal to €250,000, it is:

(i) unsecured; or

(ii) secured only by All Sums Due Security granted by the relevant Participating Enterprise to the Finance Provider as a condition to the advance of funds under a finance agreement other than the Qualifying Finance Agreement in question,

(and for the avoidance of any doubt, if such Qualifying Finance Agreement provides for a Credit Amount greater than €250,000, it may be unsecured, secured or partially secured, at the discretion of the Finance Provider, and where secured or partially secured, may be so secured by such security interest as the Finance Provider may require, whether or not entered into for the purposes of that Qualifying Finance Agreement);

(o) if such Qualifying Finance Agreement provides for a Credit Amount less than or equal to €250,000, it is not the subject of any personal guarantee;

(p) if such Qualifying Finance Agreement provides for a Credit Amount greater than €250,000, it may be the subject of a personal guarantee if the guarantee is required to support the provision of security for such Credit Amount or if the guarantee is unsecured and is limited to 20% (twenty per cent) of the Credit Amount under such Qualifying Finance Agreement;

(q) such Qualifying Finance Agreement and related documents are in a form that is consistent with the requirements of the Credit Guarantee Scheme and this Guarantee as at the date such Qualifying Finance Agreement is entered into;

(r) such Qualifying Finance Agreement is not a non-performing exposure (as classified in accordance with Annex V to Commission Implementing Regulation (EU) No 451/2021) on the date that it becomes a Covered Finance Agreement in accordance with the provisions of this Guarantee, save only where such Qualifying Finance Agreement is so classified solely as a consequence of historic defaults by the relevant Participating Enterprise and such Participating Enterprise is not currently in arrears with respect to any payments obligations to the Finance Provider;

(s) such Qualifying Finance Agreement entitles the Finance Provider to demand immediate repayment of the Credit Amount outstanding thereunder in the circumstances contemplated by clause 3.5;

(t) such Qualifying Finance Agreement contains the terms and conditions set out at Schedule 4; and

(u) such Qualifying Finance Agreement contains representations from the Participating Enterprise party thereto that it satisfies the Participating Enterprise Eligibility Criteria on the date of the Qualifying Finance Agreement.

Excluded Sectors

Part A

The following sectors (as identified by NACE Code) are excluded from the Ukraine Credit Guarantee Scheme:

Restricted Sectors

Part B

1. Illegal Economic Activities

• Any production, trade or other activity, which is illegal under the laws or regulations of the home jurisdiction for such production, trade or activity (“Illegal Economic Activity”).
• Human cloning for reproduction purposes is considered an Illegal Economic Activity.
  

2. Tobacco and Distilled Alcoholic Beverages

• The production of and trade in tobacco and distilled alcoholic beverages and related products.

3. Production of and Trade in Weapons and Ammunition

• The financing of the production of and trade in weapons and ammunition of any kind. This restriction does not apply to the extent such activities are part of or accessory to explicit European Union policies.

4. Casinos

• Casinos and equivalent enterprises.

5. IT Sector Restrictions

Research, development or technical applications relating to electronic data programs or solutions, which: 

(i) aim specifically at:

(a) supporting any activity included in the Restricted Sectors referred to under 1. to 4. (inclusive) above.

(b) internet gambling and online casinos; or

(c) pornography,

or which:

(ii) are intended to enable to illegally:

(a) enter into electronic data networks; or

(b) download electronic data.

6. Life Science Sector Restrictions

When providing support to the financing of the research, development or technical applications relating to:

(i) human cloning for research or therapeutic purposes; and

(ii) Genetically Modified Organisms.