Microfinance Ireland has done a deal with the Strategic Banking Corporation under which an injection of €30m will enable MFI to reduce interest rates on its loans, with terms of up to five years and amounts up to €25,000.

The arrangement makes MFI the fourteenth provider of lower-cost SBCI loans to Irish businesses.

MFI chief executive Des McCarthy said: “Having seen a very significant increase in demand for our loan products over the past 18 months, MFI is delighted to have secured this €30m in new liquidity.

"This funding will allow us to support an even greater number of startups and established micro-enterprises with fewer than 10 employees and up to €2m annual turnover.

“The rate offered on this funding will lead to a reduction in the rates we charge our borrowers, thereby making our loans more affordable for our customers and supporting more of them with their business plans.”

In Association with

SBCI chief executive June Butler added: “It has been a very difficult time for all businesses in Ireland over the last 18 months, and in keeping with the SBCI’s mandate to offer low-cost credit to Irish SMEs while driving competition and innovation in the Irish finance market, today’s announcement offers a great new option that will go a long way towards helping many businesses thrive into the future.”

MFI provides an alternative source of funding to micro-enterprises – those with less than ten employees — who are unable to secure finance from banks and other commercial providers, operating in partnership with the Local Enterprise Office Network, local development companies and banks as sources of loan referrals, in addition to its own direct channel.

Photo (l-r): Minister Damien English TD, June Butler and Des McCarthy.