23 Nov Mayo businesses should apply for new Brexit loan as transition period nears an end – Dillon
Small businesses in County Mayo should apply for a new loan to help them prepare for Britain’s exit from the single market and customs union at the end of this year, Deputy Alan Dillon has said.
Deputy Alan Dillon said, “I know that Brexit will be challenging for businesses and they want to be prepared, so I welcome the opening of this new scheme by the Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar T.D.
“The new Microfinance Ireland (MFI) Brexit Business Loan, will provide up to €25,000 to businesses whose turnover already is or is likely to fall 15% or more or if the business has a short term cashflow need as a result of Brexit. Loans are available for between six months and three years.
“Any business, including a Sole Trader, Partnership or Limited Company, with less than 10 employees and annual turnover of up to €2 million can apply, where they are unable to secure finance from a Bank or commercial lending provider.
Mayo businesses can apply though their Local Enterprise Office Network or can apply directly to Microfinance Ireland (MFI).
“There are less than 50 days until the end of the transition period on 31 December. It is urgent that all businesses large and small in Mayo now revisit their readiness plans.
“From 1 January, the UK will no longer apply the rules of the EU’s Single Market and Customs Union. This means that any business that moves goods from, to or through Great Britain will be subject to a range of customs formalities, SPS checks and other regulatory requirements that do not apply to such trade today.
“There is now an extensive range of training material and information available online on the Government’s new Brexit Information Hub to help businesses prepare for Brexit and the lasting change that it will bring. The hub can be accessed via Gov.ie/getbrexitready,” Deputy Alan Dillon said.
Announcing details of the scheme, Minister Varadkar said: “I know it’s been a really hard year, especially for our small, local businesses and imminent Brexit feels like another bodyblow on the way. This new loan is just one of the ways we are helping business to prepare.
“It will provide low cost finance of up to €25,000 and business owners can apply through MFI. 77% of MFI’s lending is to businesses outside of Dublin, which is important as businesses all over Ireland will feel the negative effects of Brexit.
“If you are a business owner and are wondering where to start, I’d recommend filling out our Brexit Readiness Checker first and having a look at what needs to be done in your business. Then please reach out and use the help that’s there.”
- Loans from €5,000 – €25,000*
- Loan Terms from six months to three years** (shorter terms depending on purpose)
- Interest rate of 4.5% APR if submitted through the Local Enterprise Office Network or other referral partners, or 5.5% APR if you apply directly
- No fees/charges or any hidden costs
- Fixed repayments with no penalty for early repayment