SBCI Brexit Impact Loan Scheme

The Brexit Impact Loan Scheme is designed to fund working capital and investments for businesses impacted by Brexit

Bank of Ireland has reached capacity under Brexit Impact Loan Scheme and are no longer accepting new applications.

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.

 

Loan Purpose

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

1Primary producers means the production, rearing or growing of primary products including harvesting, milking and farmed animal production prior to slaughter. It also includes hunting and fishing and the harvesting of wild products.
2Bank of Ireland is not for responsible for information provided on third party websites.

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

 

1Mid-Cap definition – SMEs are defined by the Standard EU definition [Commission Recommendation 2003/361/EC] as enterprises that:
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.
2Security may be required.
3Reference Rate and Margin will be determined by the loan size. For loans under €250,000 the variable rate is made up of the Small Business and Agri Rate (SBAR) plus a margin of 2.29% – The SBAR rate is a BOI reference rate under SME Regulations. The SBAR rate is 0.84% (correct as at 03/08/2022) and is liable to change. For up to date SBAR rates please visit Business Banking Reference Rates | Bank of Ireland
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
4Interest only and Capital and Interest moratoriums for up to 3 months at the start of your loan at the Bank’s discretion.

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?

SMEs/Mid-Caps that:

  • 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

 

Excluded Activities

  • 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

1Bank of Ireland is not for responsible for information provided on third party websites.

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.

 

Eligibility Confirmation

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.

 

State Aid

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

Warning: The entire amount that you have borrowed will still be outstanding at the end of the interest-only period.
Warning: If you do not meet the repayments on your credit facility agreement, your account will go into arrears, this may affect your credit rating which may limit your ability to access credit in the future.
Warning: The cost of your repayments may increase.

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

FAQs

  • What loan terms are available?

    1-6 years

  • What are the interest rates on the Brexit Impact Loan Scheme?
    • Loans < €250k priced at 2.29% off SBAR
    • Loans => €250k priced at 3-month BCOF + 2.51%
    • Interest-only and capital and interest moratoriums will be available for up to 3 months on loans, at the bank’s discretion

    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

  • Do I need to provide security?

    Unsecured loans up to €500,000, for amounts over €500,000 security maybe required

  • What is the difference between SMEs and Mid-Caps?

    SMEs are defined by the Standard EU definition as enterprises that:

    • Have fewer than 250 employees.
    • 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
    • Are 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
  • Are additional documents required for my application?

    We may need some documents to help us make a decision about your loan application. These may include:

    • Most recent set of Management Accounts; or
    • Most recent set of Certified Accounts; or
    • Most recent set of Audited Accounts