No interest or repayments for six months on Microfinance Ireland’s Covid-19 loans

There will be an option for a six-month moratorium on interest and repayments under the new Microfinance Ireland Covid-19 loan scheme, Minister for Business Heather Humphreys has announced.

The Minister urged micro enterprises, which are sole traders and limited companies with fewer than 10 employees, affected by Covid-19 to consider applying for the loan to ease their cashflow problems.

“Small businesses need liquidity right now and this loan is designed to assist them in the uncertain months ahead,” Ms Humphreys said.

“Firms can borrow up to €50,000 for a maximum three-year term but there are no hidden costs and no penalties for early repayment.”

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Businesses can opt for the first six months to pay 0 per cent interest and make no repayments. The loan would then be repaid over the remaining 30 months of the 36-month period.

The Minister said the loans can be used for working capital requirements as well as to help businesses with any changes they have to make as a result of the coronavirus outbreak.

The Minister emphasised to eligible businesses that they will receive a lower rate of interest if they apply through their local enterprise office, which can also offer many other supports for businesses affected by Covid-19.