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If you're looking for a business loan of up to €25,000 to fund your startup or established business, then Microfinance Ireland can help

Microfinance Ireland (MFI) is a not-for-profit lender set up by the government in 2012 as part of the Action Plan for Jobs to administer the Microenterprise Loan Fund Scheme. The purpose of this scheme was to promote economic development, increase employment and enterprise, yet the credit environment for Irish startups and small businesses is very different now from when it started.

MFI provide loans to newly established and growing micro enterprises for commercially viable proposals that do not meet the conventional risk criteria applied by banks. MFI often acts as a catalyst for ‘changing lives’, helping people to set up or grow businesses, fulfilling dreams and giving people true purpose in their lives. It provides loans up to €25,000 for up to five years to micro-enterprises that have difficulty in accessing finance mainly from banks.

Addressing a Funding Gap

At the time MFI commenced, small businesses were finding it very difficult to secure much-needed financial support from traditional lending providers. While banks are lending again, Microfinance Ireland continues to experience year-on-year increases in demand for its services. This highlights the fact that there is always a need for an organisation like Microfinance Ireland to offer an alternative source of funding to those businesses that do not meet standard bank lending criteria.

Unsecured Loans

MFI business loans can be used by start-ups and established businesses for set-up costs, working capital or business expansion, and to support the creation and retention of jobs. As a not-for profit and government-funded lending organisation, MFI is mandated to underwrite credit at a risk level beyond that of commercial lenders and which is unique in the marketplace. In addition, its loans are granted on an unsecured basis and at affordable pricing.

LEO Mentoring

As part of the application process, applicants are given a full and fair credit assessment and, where appropriate, offered affordable loans while ensuring that no applicant takes on unsustainable levels of debt. The Local Enterprise Office network, which is a key referral partner and a major source of lending applications for MFI, supports the organisation by assisting micro-enterprises with their loan application, business training and mentoring support.

In Association with

In addition, and as part of its loan packages, MFI offers expert one-to-one post-approval mentoring to approved loan applicants through the LEOs. This is an important support for successful loan applicants in helping them develop their business acumen, and it supports the sustainability of their business over the longer term. MFI also works closely with Local Development Companies across the country and with the main Irish banks.

Direct Channel

Microfinance Ireland also operates a direct channel that is proving very popular with customers. Potential customers can go online, research what products best suit their business needs and register to start the loan application process online. A member of the MFI team will contact them and guide them through the entire process.

Up to June 2019, MFI has approved over €31m in loans to over 2,100 businesses, supporting over 5,200 jobs. The promoters of many of these businesses are in vulnerable sectors such as youth, unemployed, females, migrants and seniors, and these business come from all business sectors. Four out of vive of approved loans are located outside of Dublin.

Go to www.microfinanceireland.ie for more information on how Microfinance Ireland can help your business start, expand and succeed.

Pictured: Mummycooks founder Siobhan Berry, pictured with Pat Breen, Minister of State for Trade, Employment, Business, EU Digital Single Market and Data Protection, funded the expansion of her business with a Microfinance Ireland loan