Ireland doubles EIB-backed SME loan scheme to €1bn until 2029

Ireland has doubled the capacity of its government-backed Growth and Sustainability Loan Scheme to €1bn, adding €500m in potential lending for businesses and extending the programme until 30 June 2029.

The expansion, announced on 12 October, follows strong demand for the original €500m programme, which began lending in September 2023 and is now substantially deployed. The scheme is operated by the Strategic Banking Corporation of Ireland (SBCI) in partnership with the Irish government and the European Investment Bank Group.

The additional capacity will support small and medium-sized enterprises, smaller mid-cap businesses and agricultural enterprises investing in expansion, productivity, technology and environmental improvements.

Loans range from €25,000 to €3m, with repayment periods of seven to 10 years. Facilities of up to €500,000 can be unsecured, reducing the need for smaller borrowers to pledge property or other assets to obtain longer-term investment funding.

Five lenders are participating: AIB, Bank of Ireland, PTSB, Close Brothers and Finance Ireland. AIB, Bank of Ireland and PTSB have reopened applications immediately, while the remaining lenders are expected to begin accepting applications in the coming weeks.

The European Investment Bank Group provides guarantee support to the scheme, helping participating institutions offer more favourable borrowing terms than might otherwise be available. Green investment projects can qualify for additional interest-rate discounts, although individual lending decisions remain subject to each bank’s credit assessment.

The programme has supported 1,972 businesses through the end of June 2026. Of the lending recorded over that period, 36% by value, or €171m, supported environmental investment, while 79%, equivalent to €374m, went to borrowers outside Dublin.

The scheme has a different purpose from revolving working-capital lending or invoice finance. Its focus is longer-term investment, including equipment, facilities and improvements that may increase productivity or reduce operating costs.

Nevertheless, access to longer-maturity funding can affect a company’s liquidity position. Financing substantial investment over seven to 10 years may reduce the need to fund those costs directly from operating cash, although the benefit will depend on the borrower’s wider financial position.

The additional €500m represents an increase in available scheme capacity, not loans already approved or disbursed. Actual deployment will depend on applications, eligibility and lender underwriting.