Microfinance Ireland helping small businesses through ongoing financial challenges (Sponsored)

Jan 27, 2021

Microfinance Ireland (MFI), the government-funded, not-for-profit lender, has been providing financial support to micro-enterprises throughout the pandemic across Ireland.

While business owners are trying everything possible to sustain their businesses through what is another hard-hitting lockdown caused by the third wave in the pandemic, Brexit may continue to make its presence felt creating negative impacts or supply chain issues for Irish businesses over the next number of months.  

Loan finance up to €25,000 from Microfinance Ireland is available specifically to support those micro-enterprises that want or need to borrow to fund their business but are unable to access finance from banks or other commercial lending providers.

Whether a business is currently closed due to COVID-19, additional working capital is required for Brexit or funding is required in the normal course of business, MFI may be able to help.

In what was an extremely challenging year for small businesses, MFI approved over €27 million in loans in 2020, supporting over 1,200 small businesses across the country – a 172% increase in loan volumes compared to previous years. Almost 70% of these loans supported businesses specifically to manage the financial impacts of COVID-19. 

Micro-enterprises represent approximately 94% of all businesses in Ireland and can be any type of business (sole trader, partnership or limited company) with less than ten employees and an annual turnover of up to €2 million. Any business that is unable to secure finance from banks and commercial lending providers can apply to Microfinance Ireland.

While, thankfully, the rollout of the COVID-19 vaccine programme is underway, it may take some months before life and business returns to normal – whatever the new normal is! Businesses should assume it will be towards the back end of the year before their business is trading without fear of further restrictions or rolling lockdowns. This needs to be factored in when determining the borrowing needs and ability to repay over the next 12 months or so.

Businesses need to continually review their financial position during 2021 and get adequate support facilities in place. MFI is delighted to receive applications from eligible small businesses that need to borrow. Applications are assessed in a fair and supportive manner. MFI’s mandate from government is to support small businesses, protect jobs and the economy overall. That support is needed now more than ever. 

For more information, go to https://microfinanceireland.ie/loan-packages-2/

(This article is sponsored by Microfinance Ireland.)