Non-bank lender Linked Finance has secured an additional €5m in funds to lend to businesses as part of the Government's Covid-19 Credit Guarantee Scheme.

The peer-to-peer lending platform says it has already funded over €10m in loans to small and medium enterprise customers since January when it became the first non-bank lender to offer loans through the government scheme.

The funds are administered through the Strategic Banking Corporation of Ireland which makes low-cost credit available to Irish SMEs.

The €2 billion Credit Guarantee Scheme - the biggest ever State-backed loan guarantee in Ireland - offers an 80% Government guarantee to participating lenders to provide Irish businesses with access to low interest loans as they respond to the impacts of Covid-19.

It was announced in recent months that the CGS will remain open for applications until the end of the year.

"Being allocated a second tranches demonstrates the success of alternative lenders participating in the scheme, and shows the improving range of options there are for businesses looking to access finance fast and efficiently in a seamless online process," Niall O'Grady, CEO of Linked Finance, said.

Linked Finance has also said it is launching a new 'Recharge SMEs loan' which will provide pubs, restaurants, accommodation providers and cafes with a loan of up to €50,000 to help them reopen, restock and rehire as pandemic restrictions are eased.

Hotels reopened from June 2, and bars and restaurants have also reopened for outdoor service.

The term of the loan is 13 months, with no repayment due for the first month.