SBCI Funding SME & Agri Finance

A new, strategic SME funding company, the SBCI’s goal is to ensure access to flexible funding for Irish SMEs by facilitating the provision of:

• flexible products with longer maturity and capital repayment flexibility, subject to credit approval.
• lower cost funding to financial institutions which is passed on to SMEs.
• market access for new entrants to the SME lending market, creating real competition.

For more detail refer to: https://sbci.gov.ie/.

An entity qualifies as an independent Small Medium Enterprise if it meets each of the following criteria:

• Less than 250 employees.
• An annual turnover of less than €50m, and/or a balance sheet total less than €43m.
• The enterprise is an independent, autonomous entity (or, if part of a wider group of enterprises, the entire group must qualify as an SME).
• Less than 25% of capital voting rights held by public bodies.
• The enterprise has a significant presence in Ireland.

Please refer to https://sbci.gov.ie/ for comprehensive detail on qualifying criteria.

Competitive Interest Rate

Finance is available at a competitive discounted interest rate from Finance Ireland Leasing standard rates.

The following are the eligibility criteria for SBCI funding:

• The SBCI Finance can be used for new long-term investment loans that are incurred in the development of an SME.
• The Finance amount is a minimum of €3,000, with a maximum financing amount of €1,000,000.
• The minimum term of the facility is 2 years and maximum repayment finance term is 5 years.

Please refer to https://sbci.gov.ie/ for comprehensive detail on qualifying criteria.

State Aid

The provision of funding for these facilities is being made under the De Minimis State Aid rules which allow for the provision of State Aid. SMEs may avail of De Minimis State Aid provided it does not exceed €200,000 in any 3-year period. In the case of certain loans, State Aid may arise by virtue of the discounted interest rate received by the SME on SBCI funding, and if so, the SME will be advised. It is important to note that the Aid is not the amount of the Finance.

Full details available at https://sbci.gov.ie/

Summary of Excluded Activities from SBCI Funding

The following activities are excluded from SBCI Funding:

• Finance of specific export operations, or finance contingent upon the use of domestic over imported products. In particular, it should not apply to financing the establishment and operation of a Distribution network in other States, or current expenditure linked to the export activity.
• Finance of pure real estate development activity.
• Finance of activities constituting pure financial transactions (e.g. purchase of shares).
• Finance to undertakings in difficulty.
• Finance of activities forbidden by national or EU law.
• Agriculture (see specific SBCI Agricultural Investment Loan product), aquaculture and fisheries loans.

Please refer to https://sbci.gov.ie/ for comprehensive detail on specific exclusions.

The following are the eligibility criteria for an Agricultural Investment Loan:

• Available to qualifying Agri SMEs and Farmers.
• The loan is available to support farm investment in agricultural machinery and facilities and investment in production and marketing.
• The Loan amount is a minimum of €25,000, with a maximum loan amount of €5,000,000.
  the minimum loan term of the facility is 2 years and maximum repayment loan term is 10 years.
• The borrower must submit a written loan application before work on the project or activity commences along with a list of costs. Loan amount must not exceed 1.5 times the amount of eligible costs (as defined in Commission Regulation (EU) No 702/2014 of 25 June 2014).
  (for further detail on eligible and ineligible costs please refer to https://sbci.gov.ie/.)
  The aid intensity or total aid resulting from a loan shall not exceed 40% of the amount of the eligible costs.
• Investments shall be in conformity with EU legislation and with Irish law on environmental protection under the Protection of the Environment Act 2003.
• Loans may be advanced to support investments in tangible assets or intangible assets on agricultural holdings linked to primary agricultural production or processing of agricultural products and the marketing of agricultural products.
• Where the loan is to support investments in tangible assets or intangible assets on agricultural holdings linked to primary agricultural production, the investment should pursue at least one of the following objectives:
  • The improvement of the overall performance and sustainability of the agricultural holding.
  • The improvement of the natural environment, hygiene conditions or animal welfare standards, provided the investment goes beyond EU standards.
  • The creation and improvement of infrastructure related to the development, adaptation, and modernization of agriculture.
  • The achievement of agri-environmental-climate objectives; and
    the restoration of production potential damaged by natural disasters, adverse climatic events, animal diseases, plant pests and the prevention of damages caused by those events.

Further details on the State Aid requirements pertaining to these loans are provided at http://sbci.gov.ie.

Summary of Excluded Activities from Agricultural Investment Loans

The following are excluded from Agricultural Investment Loans:

• Finance of specific export operations, or finance contingent upon the use of domestic over.
• Imported products. In particular, it should not apply to financing the establishment and operation of a distribution network in other States, or current expenditure linked to the export activity.
• Loans to support investments required to comply with EU standards in force.
• Loans to an undertaking which is subject to an outstanding recovery order following a previous.
• Commission Decision declaring an aid illegal and incompatible with the internal market loans to undertakings in difficulty.
• Loans to support the purchase of production rights, payment entitlements, and annual plants.
• Loans to support the planting of annual plants.
• Loans to support drainage works.
• Loans to support the purchase of animals.
• Loans to acquire land.

Please refer to https://sbci.gov.ie/ for comprehensive detail on specific exclusions.