Taxi owners who wish to buy an electric vehicle can now apply for loans of up to €25,000 from Microfinance Ireland.
Earlier this year, the Government made €15m available under the Electric SPSV Grant Scheme to help drivers of taxis, hackneys and limousines replace their diesel or petrol cars with an electric wheelchair accessible vehicle.
But as a result of the Covid-19 pandemic, many would-be electric Small Public Service Vehicle purchasers have been finding it hard to access finance from the banks.
Microfinance Ireland has now stepped into the breach, offering loans to those who can't get them from mainstream lenders.
"We are very pleased to support this important government initiative and to provide further help to small businesses in this sector," said
"We are providing loan finance to those that are having difficulty in securing funding from banks and commercial lending providers due to the impact of the pandemic on their business but who now wish to replace their vehicle with a more sustainable model."
"If they are having difficulty in securing finance, they should talk to us to see if Microfinance Ireland can help."
Loans of between €5,000 and €25,000 will be available, with an Annual Percentage Rate of between 4.5% and 5.5%, depending on whether the application is made through a Local Enterprise Office or directly to Microfinance Ireland.
The loans will be up to 5 years and there will be no interest-only or repayment moratoriums.
Only firms with less than 10 staff and a turnover of less than €2m can apply.
The development has been welcomed by the Government.
"This new loan demonstrates the cross-departmental links between my Department, the Department of Environment, Climate and Communications and Transport whereby taxi drivers and other SPSV owners, whose income has been severely reduced in the last 18 months, can access a loan to take advantage of the part grant being delivered by Government," said Minister of State for Business, Employment and Retail, Damien English.
"We want the future to be green and this is a strong signal that our microbusinesses involved in transport can lead on this move into the future."
