AIB partners with the Strategic Banking Corporation of Ireland

FINANCIAL REPORTING
AIB partners with the Strategic Banking Corporation of Ireland by AIB

AIB partners with the Strategic Banking Corporation of Ireland (SBCI) to provide the Growth and Sustainability Loan Scheme to SMEs across Ireland

by AIB

Implementing sustainable growth can bring extra costs to a business, and in the current economic climate this may be difficult for many SMEs. This is why it is so important for AIB to find ways to support SME customers by providing financial support to allow them the opportunity to fund their business goals.

AIB is aware of the bravery it takes to run a business and is committed to supporting you and your business. AIB has partnered with the Strategic Banking Corporation of Ireland (SBCI) to provide a range of solutions for SME and Agriculture customers.

AIB now has loans under the Growth and Sustainability Loan Scheme, the latest SBCI loan scheme for both green and non-green lending for SMEs in Ireland. The Scheme is being introduced to encourage SMEs to invest in their businesses, drive productivity gains and to accelerate the transition to a more environmentally sustainable SME base.

June Butler, CEO of SBCI said “The SBCI welcomes AIB’s participation in the Growth and Sustainability Loan Scheme, as it means that Irish businesses, farmers and fishers have increased access to longer-term, lower-cost finance to fund their sustainable growth. Many businesses need the longer-term finance of up to 10 years made possible through the Growth and Sustainability Loan Scheme, to invest in strategic and ultimately sustainable growth. Loans provided by AIB will be at reduced interest rates and will be available unsecured up to €500,000.

This Scheme is a key enabler of our joint commitment to supporting the growth, prosperity and the transition to sustainability of Irish businesses.”

Who is the SBCI?

The Strategic Banking Corporation of Ireland (SBCI) was established in 2014 to avail of both national and international funding for the purpose of making low-cost credit available to Irish SMEs. Credit is provided through on-lending partners who, in turn, lend directly to SMEs.

The SBCI is a vital part of Ireland’s financial system, taking a different approach to fund Irish SMEs with the aim to help SMEs grow, innovate and prosper, leading to a better economy for all.

AIB sees its role as supporting their customers on their journey to develop and grow their business more sustainably, through funding, facilitation, and advice. Sustainability needs commitment to actions and the Growth and Sustainability Loan Scheme is here to help customers and their business.

We spoke to David Broderick, Director of the SFA (Small Firms Association) on the importance of having SBCI loans available within the SME landscape.

“To make Ireland a better country for entrepreneurs, business owners must have access to a sufficient supply of credit. SBCI’s flexible products with longer maturity and capital repayments and in some instances the provision of a partial guarantee subject to credit approval allow micro and small firms to borrow for investment that ensures their business can grow, scale, and succeed.

In the past three years small business owners have faced many obstacles and will continue to do so as they enter 2024. The SBCI’s Growth and Sustainability Loan Scheme will allow eligible small businesses to remain resilient in the year ahead.”

Everything to Know about the Growth and Sustainability Loan Scheme

The SBCI Growth and Sustainability Loan Scheme (GSLS) is a long-term, low-cost scheme which aims to support eligible businesses, SMEs, and Mid-Caps, including farmers and fishers with long-term financing to invest in the growth and resilience of their enterprises or improve their performance in terms of climate action and environmental sustainability.

To qualify, customers must meet the eligibility criteria for either the Climate Action and Environmental Sustainability loan purposes or the Growth and Resilience loan purposes set out by the SBCI see: Growth and Sustainability Loan Scheme- SBCI

These are a long-term investment for your business towards climate action and environment sustainability.

The Growth and Sustainability Loan Scheme (GSLS) is established and offered by the Strategic Banking Corporation of Ireland (SCBCI) and benefits from a guarantee that has been provided by the European Investment Bank Group (EIB), with support from the Department of Enterprise, Trade and Employment (DETE) and the Department of Agriculture, Food, and the Marine (DAFM).

There is €500 million in funds available for the GSLS, of which AIB has been allocated €193 million to support customers. The loan is 80% state backed and the bank is guaranteed as opposed to the borrower.

Loan Purpose

Loans will be granted subject to certain conditions – for, but not limited to the following purposes:

Investment in green/sustainable measures
Investments in tangible or intangible assets
Machinery or equipment
Research and development
Business expansion
Premises improvement
Process innovation

Loan Features

Loan amounts from €25,000 to a maximum of €3,000,000 per borrower.
Loan terms from 7-10 years
Loans up to €500,00 are unsecured; loans above €500,000 may be secured.
Loans are available until 30 June 2026 or until the Scheme has been fully subscribed.

John Brennan, Head of AIB Retail SME said “Our continued strong partnership with the SBCI allows us to bring a variety of finance options to our business customers for all stages of their business. With the Growth and Sustainability Loan Scheme, eligible businesses can avail of low-cost loans unsecured up to €500,000 for investment in the long-term growth and/or the environmental sustainability of their business. We’ve made it easy for eligible customers to apply using our SBCI Lending Enquiry Form, which is available on Growth Sustainability Loan Scheme |SBCI (aib.ie).”

AIB aims to support SMEs with their growth plans while striving for a greener future by backing those who are building it today. By obtaining a SBCI GSLS loan, you and your business can work towards the future you are after.

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