Bank of Ireland has signed a £50 million global loan agreement with the European Investment Bank. The money is intended to support investment projects promoted by small and medium sized enterprises (SMEs) and smallerscale schemes in the areas of environment, energy, infrastructure, urban renewal, education and health.
The loan includes an allocation of nearly £6 million for the EU Support Programme for Peace and Reconciliation in the Border counties and Northern Ireland. Projects in the Border counties are earmarked for £800,000 and those in Northern Ireland for £5.99 million (£5.03 million sterling).
Under the programme, qualifying projects receive a 3 per cent interest subsidy for the first five years on all loan types. The loans themselves may extend beyond five years at normal market rates.
Eligibility for the interest subsidy is based on a broad range of criteria. "Broadly speaking, any small business initiative that has an employment creation potential is eligible," said Mr Peter Dunne, Bank of Ireland's manager of business banking.
Priority will be given to smaller companies or those with less than 15 employees, said Mr Dunne. Areas of interest include: tourism, research and development, those furthering industrial competitiveness, innovation or developing new markets. Projects that enhance the peace environment, assist deprived areas of Northern Ireland or encourage cross Border co-operation are also looked upon favourably.
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