The Republic of Ireland’s AIB is launching a new €500mn scheme to support the country’s micro, small and medium sized business (MSMEs).
The scheme, which will be available from June 1, will offer loans to MSMEs primarily to restructure existing debts that are hindering trade capacity.
Funding from AIB will also be used to provide additional working capital for companies.
Credit will only be offered to MSMEs that can demonstrate their ability to trade through the current economic challenges and recover within a two-year timeframe.
“This restructuring along with the provision of additional working capital aims to ease cash flow pressures for micro/small businesses that are currently experiencing trading difficulties, who may have had difficulty in accessing credit in the past, but have good prospects of recovery and are viable in the longer term,” says AIB in a statement.
Denis O’Callaghan, general manager, retail banking Ireland at AIB, adds: “We are acutely aware of the significant deterioration in the business environment continues to create severe cash flow difficulties for many of our business customers. Micro and small businesses in particular are significantly impacted by the difficult trading conditions, falling sales and slower payment cycles.
“We know we have a role to play in supporting our customers and in the general economic recovery. The scheme provides us with a mechanism to provide much needed breathing space that small businesses need to ease cash flow and improve their prospects for recovery.”
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