Six-month moratorium on interest and repayments on new Microfinance Ireland COVID-19 loan – Minister Humphreys
Minister for Business, Enterprise and Innovation, Heather Humphreys TD, today announced that the new Microfinance Ireland COVID-19 loan, which was announced by the Government last week, includes an option for a moratorium on interest and repayments for the first six months.
She urged microenterprises - sole traders and limited companies with fewer than 10 employees - that are impacted by COVID-19 to consider applying for the loan to ease their cashflow problems.
Minister Humphreys said:
Small businesses need liquidity right now and this loan is designed to assist them in the uncertain months ahead.
Firms can borrow up to €50,000 for a maximum three-year term but there are no hidden costs and no penalties for early repayment
The loan has very attractive terms, in particular the fact that businesses can opt for the first six months to pay 0% interest and make no repayments. The loan would then be repaid over the remaining 30 months of the 36-month period.
I would strongly urge micro-enterprises experiencing cashflow difficulties to visit the Microfinance Ireland website to see if this loan might be the right option for them.
Not only can it be used for working capital requirements, it can also help businesses with any changes they have to make as a result of COVID 19.
The Minister emphasised to eligible businesses that they will receive a lower rate of interest if they apply through their Local Enterprise Office, which can also offer many other supports for businesses affected by COVID19.
The relevant page of the Microfinance Ireland website is here.
A list of Frequently Asked Questions (FAQs) is available here.