To apply for the Covid-19 Credit Guarantee Scheme with Linked Finance, your business must:
It only takes a minute to express your interest – so don’t delay and we will call you back within 1 working day to progress your application.
We believe in providing business finance that’s simple and fast to access, offers great rates and provides real support every step of the way.
The Covid-19 Credit Guarantee Scheme (the “Scheme”) is provided by the Government of Ireland to facilitate lending at discounted rates to Micro, Small and Medium-sized Enterprises (SMEs) adversely impacted by Covid-19. This includes Primary Producers such as Agriculture and Fishing businesses.
The scheme is aimed towards businesses experiencing an adverse impact of at least 15% actual or projected turnover or profit due to Covid 19.
The Scheme provides a state guarantee provided by the Department of Enterprise, Trade and Employment to the finance provider of up to 80% of the loan value in the event the loan cannot be repaid by the borrower.
The minimum amount you can borrow with Linked Finance under the Scheme is €10,000. The maximum is €250,000. The loan is at a fixed rate of interest and the term of the loan can be between 12 months and up to 5 years. The loan is repayable in monthly instalments and by direct debit.
The maximum amount of the credit that is permitted to be advanced to a borrower under the Scheme cannot exceed €1m, and will be determined by one of the following three criteria:
When working out this maximum loan amount we will need to take into account if you already have a live loan under this Scheme with us or with another provider.
The documents you provide to us as part of your application will help us to determine the maximum amount of credit you can apply for. As part of your application will be asked to provide:
The loan can be used to boost working capital or for capital expenditure for your business. For example, you might use it for:
In some specific circumstances this Scheme can be used to re-finance existing debt facilities, but only where this would have a substantial benefit to the business’ cash flow position and the refinance loan amount cannot be more than 30% of the total new loan.
Limited Company SME businesses, (those with less than 250 employees and turnover under €50m), or Limited Company Micro-enterprises (those with less than 10 employees and under €2m turnover) trading at least 2 years with annual turnover in excess of €100,000, can apply for a loan with Linked Finance.
Some conditions apply for all Linked Finance loans. These include:
In addition, to fulfil the Credit Guarantee Scheme criteria, you will be asked to confirm that:
Businesses from certain limited sectors or industries are not eligible for the Credit Guarantee Scheme. Please refer to FAQ “Which business sectors are not eligible” for more information.
Unfortunately Sole Trader and Partnership businesses are not eligible for a Covid-19 Credit Guarantee Scheme Loan with Linked Finance.
Once we receive your application we will go through all the eligibility criteria in more detail.
A few certain sectors or industries are not eligible to apply for a loan under the Covid-19 Credit Guarantee Scheme.
If you’re not sure, the list of eligible business sectors by NACE code can be checked on the SBCI’s website.
Businesses that were in financial difficulty as at 31 December 2019 are not eligible to apply for lending under this scheme.
SME businesses only need fulfil one of these criteria to be in difficulty:
Micro-enterprises which were already in difficulty on 31 December 2019 are eligible provided that they are not subject to collective insolvency procedures under national law and that they have not received rescue aid, which is not yet fully repaid, or restructuring aid or alternatively, if any restructuring aid was received, it remains subject to a restructuring arrangement.
To ensure you get a fair interest rate on a Linked Finance Credit Guarantee Scheme loan, the rate you pay is always determined by our credit evaluation process. Our rates are determined by the credit grade awarded and the term of the loan.
Our rates start at 4.75% p.a.
First, start off your application by filling in the online application page.
We will call you back to go through the scheme in more detail and go through the eligibility criteria in more detail.
To complete your application you will need to provide supporting documentation.
In some instances we may need to ask for more information but we commit to do this as quickly and simply as possible.
Once we have this documentation we can commence the credit review. If you are successful, we will tell you the loan grade we have assigned and the relevant interest rate. At that point you can decide if you would like to proceed with the loan.
Once you have accepted the loan offer and provided documentation to verify your address and identity, the loan will be funded and you will be able to draw down your funds.
We like to work with speed to get you your funds as quickly as possible, so you will have a named account manager to see you through every step of the process.
Linked Finance will charge you a success fee if the loan goes ahead. This fee is 3.0% of the loan amount requested.
In addition, the borrower contributes to the cost of the Covid-19 Credit Guarantee Scheme by paying a risk premium on the loan value. This premium is separate from, and is in addition to, the cost of the credit advanced. We collect this premium as part of each direct debit and we will pay this to the Government on your behalf.
The premium rate for SMEs that will apply will depend the length of time for which the credit is being advanced, as per the table below:
|Duration of Facility||1 year||2 year||3 year||4 year||5 year|