Permanent TSB has become the latest bank to take part in the Government's €800m Future Growth Loan Scheme (FGLS), which provides new low-cost funding to Irish SMEs.
The Strategic Banking Corporation of Ireland (SBCI) said that from today, Permanent TSB will offer €50m in low-cost SME loans.
The terms of the loans will range from seven to ten years and will be used to support capital expenditure and promote business investment for development, expansion and improvement.
All FGLS loans are secured with an 80% guarantee from the SBCI, making it easier and cheaper for small and medium sized businesses to borrow.
Permanent TSB becomes the fifth bank here to offer these loans and is the SBCI's 12th on-lending partner to date.
The SBCI aims to enhance competition in the SME funding market by supporting a combination of banks and non-bank lenders, as well as a mix of long-established institutions and newer entrants to the market.
Over 32,000 SMEs have benefited from almost €1.7 billion in lower cost flexible funding drawn down through SBCI-backed initiatives to date.
Eamonn Crowley, Permanent TSB's chief executive, said today's news was a major statement of intent in growing the bank's SME lending.
"By teaming up with the SBCI and offering SME loans under the Government's Future Growth Loan Scheme (FGLS), we are bringing €50m in new lending capacity to both new and existing SME customers. We will continue to develop and extend our offering to SME customers backed by our strong commitment to the communities in which we operate," Mr Crowley added.
Nick Ashmore, SBCI's chief executive, said that as well as driving the successful take-up of the Future Growth Loan Scheme, the addition of Permanent TSB helps achieve the SBCI's objective of promoting greater competition in SME lending and giving SMEs more choice from more lenders.
"Permanent TSB's clear ambition to grow its SME lending, combined with the support of the scheme, will create a compelling offering for firms looking to finance their long-term investment," Mr Ashmore stated.
