- The Brexit Impact Loan Scheme
- Features and benefits
- Who can apply
- How to apply
- Frequently Asked Questions (FAQs)
The Brexit Impact Loan Scheme
The Brexit Impact Loan Scheme is offered by the Strategic Banking Corporation of Ireland (SBCI)* in partnership with the Department Enterprise, Trade and Employment (DETE), the Department of Agriculture, Food and the Marine (DAFM), the European Investment Fund (EIF) and the European Investment Bank (EIB).
It will run until 31st December 2022 or until it is fully subscribed.
The SBCI Brexit Impact Loan Scheme (the “Scheme”) is designed to address the economic impact of Brexit. The Scheme provides funding support to enable eligible Irish businesses, including primary producers, to fund investment in their enterprise and allows for the provision of a credit facility where you borrow a certain amount at a variable interest rate which is repayable over a certain term.
- Working capital and investment loans to support SMEs, including primary producers 1 (Agriculture/Fishing), impacted primarily by Brexit.
- Refinancing of existing SBCI Brexit Loan Scheme facilities
- Refinance of non BLS loans is permitted subject to element of refinance being limited to 30% of the BILS loan being sought.
*SBCI stands for Strategic Banking Corporation of Ireland. For more information on SBCI visit http://sbci.gov.ie/ 2
Features & Benefits
- Loan amounts from €25,000 to a maximum of €1,500,000 per borrower (€1,400,000 for Small Mid-Caps)1 (loan amounts are dependent on aid intensity and State aid thresholds)2
- Loan terms from 1 year up to 6 years (loan terms are dependent on the purpose of the loan)
- Variable interest rate loans3
- Unsecured loans from €25,000 to €500,000
- Interest only option4
Have an annual turnover not exceeding €50 million and/or an annual balance sheet total not exceeding €43 million.
Are independent and autonomous i.e. not part of a wider group of enterprises.
Have less than 25% of their capital held by public bodies.
Is established and operating in the Republic of Ireland.
A Small Mid-Cap is an enterprise that is not an SME but has fewer than 500 employees.
For loans over €250,000 the variable rate is made up of the 3-month Bank Cost of Funds (3-month BCOF) with a margin of 2.51% – The 3-month BCOF is a BOI reference rate under SME regulations. The 3-month BCOF rate is 0.06% (correct as at 03/08/2022). For up to date BCOF rates please visit Business Banking Reference Rates | Bank of Ireland
Who can apply?
Loan is available to eligible Micro enterprises, SMEs and Small Midcaps and primary producers operating in the Republic of Ireland. Non- Bank of Ireland customers can also apply for the Brexit Impact Loan Scheme Loan.
Who cannot apply?
- Do not satisfy the Scheme eligibility criteria
- Are in financial difficulty
- In the last 5 years have entered into an arrangement with creditors, are bankrupt, being wound up or having its affairs administered by the courts
- Are subject to or fulfil the criteria under domestic law for being placed in collective insolvency proceedings
- Have been convicted of an offence concerning professional misconduct by judgement, fraud, corruption, involvement in a criminal organisation, money laundering or any other illegal activity where such illegal activity is detrimental to the European Union’s financial interests
Does your business qualify?
To apply for the Brexit Impact Loan Scheme, you must be able to declare that your business:
- Export products, services, or raw materials to the UK (including Northern Ireland) equating to at least 15% of business turnover; OR
- Import products, services, or raw materials from the UK (including Northern Ireland) equating to at least 15% of business turnover; OR
- The combined exposure (of 1 and 2 above) equates to at least 15% of business turnover; OR
- The business is indirectly exposed to the UK (including Northern Ireland), i.e. transacts products, services or raw materials with an enterprise that is directly exposed to the UK (including Northern Ireland) equating to at least 15% of turnover
- Financing of pure real estate development activity
- Financing of land/property purchase, including agricultural land
- Financing of activities constituting pure financial transactions (e.g. purchase of shares)
Before you apply, make sure that your business qualifies for the scheme https://sbci.gov.ie/products/brexit-impact-loan-scheme-bils 1
How to apply
Step 1 – The applicant must first submit an Eligibility Application Form to the SBCI to check if they are eligible for the Scheme. If the SBCI determines that the applicant is eligible, the applicant will be notified in writing and will be supplied with an eligibility reference number (eligibility code).
Step 2 – The applicant must provide this eligibility confirmation letter/code to the Bank when submitting their credit application.
For customers with a Business Relationship Manager you can apply for a Brexit Impact Loan Scheme through your Business Relationship Manager.
If you’re seeking a loan of up to €120,000 and don’t have a Business Relationship Manager you can apply online, see button below.
For loans of over €120,000 please contact your Business Relationship Manager or Branch.
Please note that the SBCI eligibility letter/code is not a guarantee of loan approval and does not impose any obligation on the lender to provide a loan.
Approval of loans is subject to the scheme lenders’ own credit criteria, policies and procedures.
The SBCI will confirm if your application to the SBCI Brexit Impact Loan Scheme has been successful and will issue an Eligibility Confirmation letter once approved. Should you have any queries about the scheme eligibility, call the SBCI helpdesk on 1800 804 482.
Loan amounts and term are dependent upon State Aid thresholds – SMEs are subject to De Minimis State Aid thresholds, provided such aid does not exceed €200,000 in any 3-year fiscal period. Borrowing under this scheme will give rise to State Aid benefit, and hence there may be a restriction on the amount of scheme funding/loan term that can be availed of by the borrower. It is important to note that the State Aid is not the amount of the loan.
What is State Aid?
Funding for the Brexit Impact Loan Scheme is provided under the EU Commission Temporary State Aid framework. See here for further details.
If you have received state aid in the past, you will have received a letter from the public agency that provided it. These include Enterprise Ireland, Bord Bia or your Local Enterprise Office.
Loans < €250,000
A Brexit Impact Loan Scheme facility of €100,000 at a variable rate of 3.13% over a 5-year term will require 60 monthly repayments of €1,802.65. The total cost of credit is €8,159.11
Loans => €250,000
A Brexit Impact Loan Scheme facility of €300,000 at a variable rate of 3.11% over a 6 year term will require 72 monthly repayments of €4,572.88. The total cost of credit is €29,247.44
Bank of Ireland is not for responsible for information provided on third party websites.
Level of security required and rate applicable, will be determined by the amount, purpose & term of facility, in conjunction with the nature and value of the security being offered.
Over 18 years only. Lending criteria, and terms and conditions apply. Maximum credit of €120,000 available for online applications.
The SBCI Brexit Impact Loan is a variable rate loan. If you repay early, in full or in part, your SBCI Brexit Impact Loan, additional charges will not be payable to Bank of Ireland