Microfinance Ireland doubles loan limit to €50k
The fund was put in place to support small businesses with less than 10 employees and with an annual turnover of less than €2 million (Photo by Pixabay via Pexels)
Microfinance Ireland (MFI), the not-for-profit lender funded by the Department of Enterprise, Trade & Employment and mandated to manage its Microenterprise Loan Fund, has received permission to double its lending limit to €50,000.
This measure is part of the government’s recently announced package of measures to support small businesses.
These loans can be used by businesses for either cashflow or expansion purposes.
“This development is one of a range of measures I announced earlier in the Summer to assist our small businesses who are the backbone of our economy,” said Minister for Enterprise, Trade & Employment, Peter Burke TD.
The increase is substantial with microenterprises now able to apply for loans up to the value of €50,000.
“Microfinance Ireland provides vital support to microenterprises across Ireland by lending to businesses that may not be able to obtain loans from other commercial lenders,” he adds.
The increase will help established businesses to secure appropriate finance to sustain and grow their business and will also offer another avenue of financial support to assist start-up enterprises.
“The latest Credit Demand Survey indicates that around 60% of microenterprises across the economy sought credit of up to €50k,” Des McCarthy, chief executive officer, Microfinance Ireland.
In MFI’s case, in the year to date to July 2024, more than 40% of applications were for amounts between €20k – €25k – the old maximum loan amount.
McCarthy expects to see significant demand for loans above €25,000.
“We provide unsecured business loans to both start-ups and established businesses that are having difficulty in getting access to funding,” adds McCarthy.
MFI lends to businesses in hospitality, food, manufacturing, construction and trades, retail and services and many more.
McCarthy concludes: “Our fund was put in place to support small businesses with less than 10 employees and with an annual turnover of less than €2 million who may be having difficulties accessing funding for their business from banks and other commercial lenders.”
