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A loan to support your business
At AIB, we’re backing Small and Medium Enterprise (SME) owners like you. We know the challenges you face, like getting more flexibility when it comes to funding.
That’s why we’re partnering with the Strategic Banking Corporation of Ireland (SBCI) to help small businesses like yours get access to loans at a lower cost and over longer terms than you’d expect. And for our customers looking for new business loans of up to €30,000, we will provide an answer within 48 hours1.
Strategic Banking Corporation of Ireland (SBCI)
SBCI is a new SME funding company, which is partnering with banks and other lending organisations to provide access to flexible funding for Irish SMEs and farmers in the form of:
- Flexible products with longer maturity and capital repayment options, subject to credit approval
- Lower cost funding to financial institutions, which is passed on to SMEs.
AIB is drawing funds from SBCI and lending to SMEs. This partnership helps us back brave small and medium businesses in Ireland.
Who can apply for an SBCI Loan?
SBCI Loans are available to most SMEs. To help SMEs borrow, we consider backing businesses that2 :
- Have less than 250 employees
- Have a turnover of €50 Million or less (or €43 Million or less on their balance sheet)
- Are independent and autonomous i.e. not part of a wider group of enterprises
- Have less than 25% of their capital held by public bodies
- Have a significant presence in Ireland.
For the agricultural sector, SMEs must also be active in at least one of the following:
- Primary agricultural production
- Processing agricultural products
- Marketing of agricultural products.
How can an SBCI loan back your brave idea?
Small and medium enterprises can use an SBCI Loan for working capital and investments such as:
- Buying, renewing or increasing tangible assets, including machinery and buildings
- Investing in intangible assets, including buying patents and licenses, the cost of designing and building a tangible asset, and R&D
- Buying out a business e.g. from a retiring owner or to create new management
- Refinancing loans held with certain banks leaving the Irish market (subject to that bank’s acceptance).
There are some exclusions. If you need finance for any of the excluded activities, discuss it with your Relationship Manager, Branch or Business Centre to find the most suitable product to meet your needs.
SBCI-supported loans are available to agricultural customers for investment only. There are certain exclusions specific to the agricultural sector, such as:
- Working capital
- Purchase of animals
How much does an SBCI Loan cost?
Loans are available at 4.5% per annum variable. This is 2% lower than our Standard Variable Business Rate of 6.5%.
A typical €25,000 five year variable interest rate loan will have 60 monthly repayments of €465.92, APR (Annual Percentage Rate) 4.58%. If the APR does not vary during the term of the loan the total cost of credit of this loan i.e. total amount repayable less the amount of the loan, would be €2,955.20.
How available is an SBCI Loan?
Like all loans, we will take everything into account when you apply for an SBCI Loan. We’ll look at your application carefully, and make a decision based on your ability to repay the facility sought. We’ll check everything and get back to you with a decision as soon as we can. If you are an AIB customer and the new loan is less than €30,000, we will respond with a decision within 48 hours1.
Are there maximum Terms and Amounts for an SBCI Loan?
An SBCI Loan is available for any term between two and 10 years.
An SBCI Loan is available for amounts up to €5m.
Is the SBCI Loan State Aid?
SBCI, which is a state body, provides a portion of the discount in interest rate. In some cases, this reduction in rate may be classified as State Aid.
If State Aid is generated, it will be delivered under either the De Minimis Aid scheme or the Agriculture Investment Loan scheme3.
Talk to your Relationship Manager who will help you find out if State Aid applies in your particular circumstances.
1 We aim to provide a decision within 48 hours upon receipt of all required information. 48 hours excludes Saturdays, Sundays and Bank Holidays. If you are experiencing financial difficulties please talk to us so we can advise the best solution for you.
2 As per Standard EU definition (Commission Recommendation 2003/361/EC)
3 Your use of this external website is subject to the terms and conditions of that site.
Full criteria, excluded activities/sectors & exiting banks.Format: XML File size: 3.5K
Warning: The cost of your repayments may increase
It is important to be aware that, as part of the application process, AIB is obliged to share information about successful applicants with the SBCI. This is primarily to validate eligibility for the scheme, but this information may also be shared with SBCI Funders, EU Bodies and State Bodies. This will be done with regard to obligations under Data Protection legislation. In relation to agricultural investment loans, SBCI may post information on its website about you the customer, the SBCI scheme project and also the loan. If you decide to proceed with this application, you consent to the transfer and use of your information in this manner. Please also be aware that SBCI may also correspond directly with you from time to time.
Lending criteria, terms and conditions apply. Credit facilities are subject to repayment capacity and financial status and are not available to persons under 18 years of age. Security may be required.
Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland.