Linked Finance has become the latest lender to partner with the Strategic Banking Corporation of Ireland (SBCI) on its Ukraine Credit Guarantee Scheme (UCGS).
The peer-to-peer lending platform is providing €50m (£42.8m) in low-cost finance to support Irish firms that have been experiencing a rise in input costs and supply chain disruptions due to the Ukraine conflict.
Under the scheme, businesses that have seen costs rise by over 10 per cent because of the conflict are eligible to receive loans at a discount of 20 per cent.
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The UCGS, which is offered by the SBCI and several Irish government departments, allows eligible borrowers to receive working capital loans of up to €250,000 with terms between one and five years.
“I am pleased that Linked Finance has joined the Ukraine Credit Guarantee Scheme, increasing the number of finance providers under this Scheme to 17,” said June Butler (pictured right), chief executive of SBCI.
“This expansion will further facilitate Irish businesses’ access to funds for working capital or investment. At the SBCI, we are committed to supporting Irish businesses by providing them with easier access to finance and promoting competition in the Irish credit market. Today’s announcement demonstrates how we are working with a wide range of finance providers to support Irish businesses that are looking for the finance they need to invest and grow and deal with the challenges and uncertainties they face.”
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Businesses wishing to apply for a loan from LinkedFinance under the scheme must first obtain a code from the SBCI to confirm their eligibility for the discounted rate. They then have until 31 December to submit their application with LinkedFinance.
“This partnership with the SBCI is a hugely positive development for the business and is a stamp of approval in the recognition of the important role that alternative lending has to play as a source of funding to help grow the SME sector in Ireland,” said Niall O’Grady (pictured left), chief executive of Linked Finance.
LinkedFinance recently secured its pan-EU crowdfunding licence from the Central Bank of Ireland.
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Since launching in 2013, it has facilitated more than 4,000 loans to Irish SMEs to the value of more than €280m.
