The Strategic Banking Corporation of Ireland is an intermediary for the effective use of EU financing supports relevant to Irish businesses, and delivery of additional types of financial instruments that enable SMEs to grow and scale-up their businesses. In this Q&A, CEO Nick Ashmore discusses the SBCI’s plans for 2019.

Can you give some background on the new Future Growth Loan Scheme? When do you expect it to be made available to borrowers? 

The Future Growth Loan Scheme (FGLS) is the Strategic Banking Corporation of Ireland’s latest scheme, being developed in conjunction with the Departments of Business, Enterprise and Innovation, and Agriculture, Food and the Marine. It is designed to support long term investment with loans of up to €3m for terms of between 8-10 years.

The annual European Investment Bank (EIB) Group Survey on Investment and Investment Finance states that 19% of Irish firms are not intending to invest in the next year compared to 10% of EU firms as a whole. This lack of investment may result in a competitiveness gap emerging between Irish firms and their EU peers. The Future Growth Loan Scheme is designed to help address this gap. The scheme is expected to be in place in 2019 and will run for three years from its launch date.

How was take-up for the Brexit Loan Scheme launched in March 2018?

More than 350 eligibility applications have been received since the Brexit Loan Scheme was launched in March 2018. Thousands of people attended a series of Getting Brexit Ready events, which highlighted the supports available to Irish SMEs that may be affected by Brexit, run by the Department of Foreign Affairs and Trade in the last quarter of 2018.

The SBCI channels loan finance to SMEs through on-lenders. Can you give an example of this in practice? 

The SBCI continues to channel low cost funding to SMEs primarily through its non-bank providers. SBCI recently announced a new €75m funding facility to support Finance Ireland’s offerings to Irish SMEs, which follows the successful deployment of €51m in SBCI funding agreed in 2015.

In Association with

Leasing and other asset finance products now account for 40% of external financing in Ireland. This represents a shift away from traditional term lending. SBCI’s support to Finance Ireland will help drive competition in Irish SME lending, making it easier and cheaper for SMEs to access the finance needed to succeed.

SBCI continues to work with all of its on-lenders including AIB, Bank of Ireland and Ulster Bank, which offer the SBCI Brexit Loan Scheme, to support Brexit-impacted businesses in Ireland.

The SBCI signalled recently that it is undertaking an independent review of the SBCI’s future strategy. What role would you like to see the organisation play in the Irish economy in future years? 

The SBCI will continue to play a role in the Irish finance market, supporting SMEs in accessing flexible low-cost funding and acting as a conduit for EU funds and Guarantees. It will work to inform its future strategy and product development through the upcoming review and continue to assist Irish SMEs in growing their businesses.

• SMEs and business advisers interested in finding out more about the SBCI can visit sbci.gov.ie.