Permanent TSB has ramped up plans for small business lending with the announcement of a €1 billion loan fund.

The bank has also signed on as a partner for the SBCI's Brexit Impact Loan Scheme.

The bank said it wants to triple the size of its SME lending, after finalising plans to acquire €7.6 billion worth of assets from Ulster Bank.

"Today’s announcement shows the extent of our ambition to grow our SME business significantly and to bring greater competition to the market at a time when it is needed more than ever," said PTSB CEO Eamonn Crowley (pictured).

PTSB will offer €32m in lower-cost loans to borrowers who have been approved for the Brexit Impact Loan Scheme, which is run by the Strategic Banking Corporation of Ireland (SBCI).

In Association with

The scheme is the successor to the Brexit Loan Scheme and will be made up of €330m in lending to Brexit-affected businesses through the participating financial providers, with PTSB joining AIB, Banking of Ireland and five Metamo credit unions.

Loans of €25,000 to €1.5m are available over terms of one to six years, with loans of up to €500,000 available unsecured, with the funds earmarked for liquidity or working capital, investment, or refinancing.

Mr Crowley stated: "The €32m lending capacity we are bringing to Brexit-impacted businesses will help both new and existing SME customers to tackle the challenges they face and support investment in making these businesses stronger."

Eligible businesses most have experienced a decline in actual or projected turnover or profit of 15% due to Brexit. Interest rates on the loans are capped at 3.7% for loans of under €250,000 and 2.75% for loans of over €250,000.