Credit unions join COVID-19 Credit Guarantee Scheme

Crowe Ireland was delighted to have helped Strategic Banking Corporation of Ireland (SBCI) in securing the participation of the Metamo Credit Unions in the government’s €2bn COVID-19 Credit Guarantee Scheme. 

The seven Metamo Credit Unions involved are 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. They have a combined membership of approximately 250,000 members. 

Speaking at the announcement the Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar T.D. said “This is really welcome news. The inclusion of credit unions means more options for SMEs seeking to take out a loan. Credit unions are embedded in communities across the country and business owners will be able to seek advice from staff who they already have an existing relationship with.”

The Tánaiste also announced the participation of three additional non-bank lenders: Linked Finance, Capitalflow and Finance Ireland in the scheme.

The Credit Guarantee Scheme is the biggest ever state-backed loan guarantee in Ireland. The Scheme offers an 80% Government 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.

The scheme is operated by the SBCI and delivered through the participating finance providers, allowing affected businesses to access additional financing through traditional lenders. The scheme has recently been extended until the end June 2021.

If you require assistance with any funding challenges or tax requirements you face as a result of the pandemic, please contact a member of our tax or corporate finance teams.