The Government Credit Guarantee Scheme

To apply for the Government Credit Guarantee Scheme you must be a viable micro, small or medium sized enterprise (SME) – as defined by the Standard EU definition [Commission Regulation 2003/361/EC]:

•  has fewer than 250 employees
• has a turnover of €50 million or less (or €43 million or less on their balance sheet)
• is independent and autonomous i.e. not part of a wider group of enterprises
• has less than 25% of their capital held by public bodies
• is established and operating in the Republic of Ireland

1. Aquaculture (Fish Farming)
   Note that the Scheme is not allowed to be used when the facility would be in support of an activity that increases fishing capacity (expressed in terms of tonnage or power) or is for the purchase, construction or modernisation of fishing vessels
   
   
2. Primary Agriculture
   Primary production in agriculture is excluded from the scope of the scheme in the light of particular restrictions under the de minimis State Aid rules and because the specific market failures identified do not apply in these sectors
   
   
3. Banking, Finance and Associated Services
   Any activity that involves granting of finance or a financial service to clients is ineligible, such as: banking, deposit taking and building societies; companies involved in granting loans, mortgages, hire purchase or credit services; mortgage brokers that are attached to banks; venture capitalists; seed corn finance companies and stockbrokers
   
   
4. Coal
   All activities in the coal sector are ineligible.
   
   
5. Formal Education
   Formal education is ineligible.
   
   
6. Insurance and Associated Services
   Companies and societies primarily engaged in transacting all types of insurance business are not eligible

Full eligibility criteria are available here.

• Guarantees offered under the scheme are for the term of facility or seven years, whichever is the shorter.
• The Guarantee is provided for facilities from €10,000 to €1million. The aggregate of all facilities granted to a particular qualifying/participating enterprise may not exceed €1million.
• Premium payments are made by the Customer by direct debit to the SBCI (Operator). A signed direct debit mandate is required at the time of drawdown for the guarantee to become effective.
• Part of the CGS participating finance agreement will count as State Aid (see below)
• The provision of the Scheme Guarantee does not remove any liability for the credit from the Customer.
• Normal lending criteria, terms & conditions apply

• The SBCI provides support for the scheme which allows a reduced interest rate to be applied. In some cases, this reduction in rate may be classified as State Aid.
• Customers are responsible for ensuring that the requirements relating to State Aid are strictly complied with.
• The relevant State Aid legislation may include:
  • EU Regulation No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid
  • Agriculture Block Exemption Regulation (Commission Regulation (EU) No 702/2014)
  • The General Block Exemption Regulation (Commission Regulation (EU) No 651/2014)
    
    
• Loan amounts and term are dependent upon State Aid thresholds
• Borrowing under this scheme will give rise to State Aid benefit, and there may therefore be a restriction on the loan amount/loan term that can be availed of by the borrower.
• It is important to note that the State Aid is not the amount of the loan.
• Full details can be found on the SBCI Website.