Banking and Payments Federation Ireland has published a guide to the Government Covid-19 Credit Guarantee Scheme, to coincide with the full opening and availability of the scheme by the three main banks, AIB, Bank of Ireland and Ulster Bank.
BPFI said it would recommend the guide to all firms that may be thinking about utilising the scheme to access credit at discounted rates.
In addition to describing the key features of the new €2 billion scheme and the types of businesses that are eligible, the guide provides answers to questions likely to arise for any interested business.
Ali Ugur, BPFI's chief economist, said the Credit Guarantee Scheme is designed to incentivise lenders to continue providing finance to businesses by providing them with an 80% state guarantee on finance provided to eligible businesses.
"The interest rate charged by participating lenders, while reflecting market competitiveness, will also reflect the benefit of the state guarantee to the lender and result in a discounted interest rate to borrowers.
"A number of leading retail banks have already committed to participate in the scheme as operated by the Strategic Bank Corporation of Ireland and this number may well increase over time," he said.
Mr Ugur said there is lots of practical information in the guide, that will be of use to businesses.
"A great many businesses have been through very difficult and challenging times and may now be seeking lending to support their businesses. We believe this information will help them in managing the transition from lockdown to increased business activity levels", he said.
The full guide to the Government Covid-19 Credit Guarantee Scheme can be found on the BPFI website here.
