NATIONAL Irish Bank has received a European Investment Bank (EIB) loan of £20 million fur on lending to small and medium sized businesses.

The cost to NIB will vary in line with market rates, but yesterday's rate was 6.8 per cent for semi annual five year loans. NIB's margin would amount to between 1 per cent and 3 per cent, depending on the risk.

The funds will be used to help finance small scale ventures in industry, services, distribution and tourism to increase their productive and competitive capacity, EIB said.

This investment is supported by the EIB as it meets the EU's objectives to promote regional development and the activities of, small and medium sized, enterprises.