Linked Finance has partnered with the Strategic Banking Corporation of Ireland (SBCI) to lend up to €50 million to Irish SMEs. The loans are said to be issued at a discounted rate.
Linked Finance is a peer-to-peer (P2P) lending platform serving smaller firms in Ireland.
The SBCI was created by the Irish Department of Finance in September 2014 to ensure that SMEs have access to lower-cost and long-term funding.
Linked Finance says that businesses have experienced a 10% increase in the cost to operate caused by the war in Ukraine. The loans will be issued at a 20% discount under the Ukraine Credit Guarantee Scheme (UCGS). Approved borrowers will be able to receive working capital loans up to €250,000 with terms between 1 – 5 years.
Niall O’Grady, CEO of Linked Finance says the partnership is hugely positive for SMEs as well as a seal of approval regarding alternative lending for businesses in Ireland.
“Linked Finance understands the unique challenges that geopolitical and supply-chain interruptions pose to SMEs and the fast, secure and effective financing it requires to adapt during challenging times.”
The CEO of SBCI, June Butler, noted there are now 17 approved lending firms under the program, and the announcement today shows how they are working with a range of lenders to support Irish firms.
Businesses have until the 31st of December 2024 to apply for a loan under the scheme.