The new Covid-19 Credit Guarantee Scheme (CGS) will make low cost loans available to businesses impacted by the pandemic
The new Covid-19 Credit Guarantee Scheme (CGS) will make low cost loans available to businesses impacted by the pandemic, providing much needed liquidity as our economy continues to reopen, according to the Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar.
The Government has agreed to publish the Credit Guarantee (Amendment) Bill 2020, which will underpin the scheme and will also remove the portfolio cap, which will result in an increased potential maximum liability for the State of €1.6 billion.
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 can access liquidity to keep their businesses operating, as our economy continues to reopen 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. As with other credit guarantee schemes, the Covid-19 CGS will be operated by the Strategic Banking Corporation of Ireland and will be available through three banks; AIB, Bank of Ireland and Ulster Bank. There will be an Open Call in due course.