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The Future Growth Loan Scheme (FGLS), developed by the Strategic Banking Corporation of Ireland (SBCI) on behalf of Government, is designed to support investment in Irish businesses and help narrow the competitiveness gap between Irish and EU firms. The Scheme is ideally suited for investment in tangible or intangible assets for process and organisational innovation.

The Scheme, which was launched in April 2019, offers low-interest loans of up to €3 million for terms of between eight and ten years to Irish businesses, including those involved in primary agriculture production and in the seafood sector.

The initial maximum interest rate is capped at 4.5% for loans up to €249,999 and 3.5% for loans more than €250,000 for the first six months. The rates thereafter are variable and will be dependent on the cost of funds at that point in time. However, the credit margin component of the price has been capped. These rates represent a significant saving compared with the prevailing rates that are otherwise being offered for similar loans on the market.

Future Growth Loan Scheme Key Features

Key features of the Scheme include:

•  €100,000 up to €3 million for eligible applicants.
• €50,000 up to €3 million for eligible applicants in the Primary Agriculture sector.
• Initial maximum loan interest rate of 4.5% for loans up to €249,999 and 3.5% for loans equal to or greater than €250,000.
• Terms ranging from 8 years to 10 years
• Loans unsecured up to €500,000.

Eligibility is aimed at viable micro, small and medium sized enterprises (SMEs) and Small Mid-Cap enterprises – more details on eligibility is available through the SBCI website www.sbci.gov.ie or the SBCI Future Growth Loan Scheme Helpline 1800 804 482.

The Scheme is aimed at supporting strategic long-term investment and loans can be used for:

In Association with

• Investment in tangible or intangible assets to increase productivity and/or efficiency, set up a new establishment or extend an existing one.
• Diversification into new products or a change in a production process.
• Investment in tangible or intangible assets for process and organisational innovation.
• Investment in tangible and intangible assets on agricultural holdings linked to primary agricultural production (excludes purchase of land other than site costs or livestock).
• Investment in connection with the processing and marketing of agricultural products.

According to Nick Ashmore (pictured), Chief Executive Officer of the SBCI: “The Scheme, which is offered through the SBCI by the Department of Business, Enterprise and Innovation, and the Department of Agriculture, Food and Marine, with support from the EIB Group’s Guarantee Facility, recognises that there is currently a funding gap between the finance that is available and the finance that is required to drive the strategic, long-term, sustainable growth of Irish businesses. If left unchecked, this will limit the ability of Irish businesses to keep pace with EU firms and compete effectively in the global economy.

“Against that backdrop, if your business has set its sights on investment in research, development, process innovation, expansion or premises improvement, or equipment and machinery investment, the SBCI FGLS can help.”

Application Procedure

The procedure to apply for the scheme is straightforward, comprising of a two-stage process.  Firstly, visit www.sbci.gov.ie and use the guidelines to assess if your business is likely to meet the eligibility criteria.  If yes, complete the eligibility form and return it to the SBCI by email or post. The SBCI will assess your application quickly (generally within 48 hours). Eligible applicants will be provided with an eligibility reference number which is valid for six months.

Secondly, by presenting the eligibility reference number (along with your updated Business Plan for loans of €250,000 or more) to your preferred finance provider, you can begin the credit application process.

The SBCI is currently finalising its FGLS’s Partner Banks, and more information will be published on its website shortly.