SBCI Covid-19 Loan Scheme (CLS)

The Covid-19 Loan Scheme (CLS) is designed to fund working capital and investments for businesses impacted by Covid-19.

SBCI Covid-19 Loan Scheme (CLS)

Bank of Ireland has reached capacity under Covid-19 Loan Scheme and are no longer accepting new applications.

Covid-19 Loan Scheme (CLS)

The SBCI Covid-19 Loan Scheme (CLS) is offered in partnership with the Department of 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).

The scheme is designed to support qualifying viable Irish businesses, including farmers and fishers, negatively impacted by the Covid-19 pandemic by providing access to affordable medium-term finance, enabling them to recover and invest in their business.

It will run until 31 December 2022 or until it is fully subscribed.

 

Loan Purpose

The Covid-19 Loan Scheme is designed to address the economic impact of the Covid-19 pandemic.

  • Working capital and investment loans to support SMEs, including farmers and fishers, negatively impacted by Covid-19; or
  • Refinancing of an existing loan that was provided to support businesses impacted by Covid-19, up to 30% of the new loan amount.

*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?

Viable micro-, small, and medium-sized enterprises (SMEs) and Small Mid-Cap enterprises that meet the eligibility criteria.

SMEs are defined by the standard EU definition contained in Commission Recommendation 2003/361/EC as enterprises that:

  • Have fewer than 250 employees
  • Have a turnover of €50 million or less (or €43 million or less on their balance sheet)
  • 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.

 

Who cannot apply?

SMEs/Mid-Cap that:

  • Does not satisfy the Scheme eligibility criteria
  • Is bankrupt or being wound up or having its affairs administered by courts.
  • Is subject to or fulfil the criteria under domestic law for being placed in, collective insolvency proceedings.
  • In the last five years has entered into an arrangement in the context of being bankrupt or wound up or having its affairs administered by courts.
  • Has 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.

 

Excluded Activities

Loans will not be provided to SMEs or Small Mid-Caps that have a substantial focus in any of the following sectors:

  • Tobacco, if it forms a substantial part of the applicant’s primary financed business activities or a substantial part of the proposed financing.
  • Gambling, casinos and equivalent enterprises or hotels hosting such facilities.
  • Ammunition and weapons, military/police equipment, infrastructure or correctional facilities, prisons.
  • Production or trade in pharmaceuticals, pesticides/herbicides, chemicals, ozone depleting substances and other hazardous substances subject to international phase-outs or bans.
  • Production or use of or trade in hazardous materials such as radioactive materials (except for medical isotopes and materials for diagnostics and treatment in healthcare provision), unbounded asbestos fibres and products containing polychlorinated biphenyls (PCBs); or
  • Destruction of critical habitats.

For the full list of Excluded Activities, please check here

 

Before you apply, make sure that your business qualifies for the scheme 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 Covid-19 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 Covid-19 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 Covid-19 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.

Representative Examples

Loans < €250,000

A Covid-19 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 Covid-19 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 Covid-19 Loan is a variable rate loan. If you repay early, in full or in part, your SBCI Covid-19 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 Covid-19 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 Covid-19 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 Covid-19 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