The government is set to push through a new loan guarantee scheme for SMEs that offers low-cost borrowing and a payment free period at the beginning of the loan term.
The €2 billion Covid-19 Credit Guarantee Scheme is expected to be up and running by autumn 2020.
Joe McHugh, TD for Donegal said: “This Scheme will be the largest credit guarantee scheme for businesses in the history of the State.
“It will ensure that SMEs, primary producers and small Mid-Caps here in Donegal can access liquidity to keep their businesses operating, as our economy continues to re-open and more and more people get back to work. It will be available for a wide range of products including overdrafts, term loans and working capital.
“The legislation is expected to go through the Oireachtas next week, allowing for its swift enactment.
“The changes being made to this Scheme will bring our offering into line with similar schemes across Europe,” McHugh said.
The Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar said: “We want to give confidence to SMEs in particular, by providing the liquidity needed to get through the economic upheaval caused by the pandemic.”
Mr Varadkar added: “This Scheme complements the other actions taken to date by Government, including direct grants to businesses, the warehousing of tax liabilities and commercial rates waivers. The July Stimulus Package will be the next step in our recovery plan as we seek to get businesses back on their feet and our people back to work.”
