Eight additional credit unions sign up to credit guarantee scheme

Total of 15 credit unions now part of move to help businesses affected by Covid-19

Scheme offers an 80 per cent State guarantee to participating lenders to provide Irish businesses with access to low-interest loans.

Scheme offers an 80 per cent State guarantee to participating lenders to provide Irish businesses with access to low-interest loans.

 

Eight additional credit unions have signed up to participate in the Government’s €2 billion Covid-19 credit guarantee scheme, bringing the total number of credit union participants to 15.

On Monday the Irish League of Credit Unions (ILCU) said that between them, the eight ILCU-affiliated credit unions have combined assets of about €1.2 billion. The credit unions are: Carrickmacross Credit Union, Castlecomer Credit Union, Clonmel Credit Union, Connect Credit Union, Mullingar Credit Union, Progressive Credit Union, Tower Credit Union and Westport Credit Union.

The credit guarantee scheme was officially launched last September through AIB, Bank of Ireland and Ulster Bank and is operated by the Strategic Banking Corporation of Ireland . It offers an 80 per cent State guarantee to participating lenders to provide Irish businesses, including those in the farming and fishing sectors, with access to low-interest loans as they respond to the impacts of Covid-19.

To be eligible, businesses must have seen or expect to have at least a 15 per cent reduction in turnover or profits due to Covid-19. The scheme is open until June 30th, 2021, or until fully subscribed.

Cara Credit Union, Mallow Credit Union, First Choice Credit Union, People First Credit Union, St Canice’s Credit Union, Limerick & District Credit Union and Synergy Credit Union all previously announced they would take part in the scheme. They have 250,000 members collectively and are all members of Metamo, a joint venture between credit unions and Fexco.

Ed Farrell, ILCU chief executive, said: “Securing access to credit is now even more important for businesses and through this scheme, credit unions will be in a position to help provide local businesses with the access and supports they need to get back trading.”