The MFI COVID-19 €20m Loan Fund was launched in late March and the level of demand has exceeded expectations.
Due to the successful uptake of the fund by micro-enterprises, the current phase of the Microfinance Ireland COVID19 Business Loan Fund of €20M is now fully subscribed.
The Minister for Enterprise, Trade and Employment has committed to an expansion of the Scheme subject to approval of published legislation, which has been prioritised by Government. MFI is confident that once this new legislation is passed, and additional Government funding is made available to MFI, along with additional resources that are now required, the Fund will reopen within a number of weeks.
The MFI COVID-19 €20m Loan Fund has successfully supported almost 700 micro-businesses with loan approval rates close to 80%.
In addition 760 existing loan customers have also been supported through restructuring or deferral arrangements making the total of 1,372 business supported in the second quarter of 2020.
MFI’s new COVID-19 lending alone has supported the retention of 2,000 jobs across the country.
In quarter 2, Applications were up c.400% over normal volumes and Loan Approval volumes are also up c.550% over normal volumes
The COVID-19 Loan Fund has supported businesses in all sectors including very vulnerable sectors, such as the wholesale and retail trades as well as the hospitality sector. These two sectors represents 35% of the Covid19 Loan Fund. Other sectors also featuring strongly include professional services, construction, scientific and technology businesses and information and communication businesses.
The Fund is well spread across the country with 65% of applications coming from outside of Dublin. Female business owners represent 23% of the applications.
In addition, we have also suspended our standard products normally available through the Microenterprise Loan Fund.
Details of MFI Loan Schemes will be announced as soon as a new fund is structured and in place.