A €2 billion scheme to provide loans to businesses affected by the COVID-19 pandemic has been extended until the end of the year.

The Credit Guarantee Scheme offers an 80% Government guarantee to participating lenders to provide Irish businesses with access to low-interest loans without personal guarantees.

Lifeline

Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar (pictured) said the scheme had been “an important lifeline” for firms over the past few months, with more than 5,000 applications so far.

He said most of the businesses using it so far have had fewer than ten employees.

The scheme has recently been expanded to include 19 credit unions and a number of non-bank lenders.

Collateral

Loans provided under the scheme range from €10,000 to €1 million for terms of up to 5.5 years. Loans under €250,000 do not require any personal guarantees or collateral.

To apply, businesses can contact a participating lender directly.