Finance Ministers to launch SME bank today
A total of €800m is being made available for lending to small and medium businesses by a new State-backed Strategic Banking Corporation of Ireland (SBCI), which is being launched today. SBCI loans will aim to help fill that financing gap with longer-duration loans tailored for company needs. SCBI’s lending rates are expected to come in at 1% lower than the market rate – as well as longer durations.
The scheme will be financed initially with €150 million from the German Promotional Bank KfW, with the other €650 million coming from the European Investment Bank (EIB) and the Ireland Strategic Investment Fund (ISIF), formerly the National Pension Reserve Fund.
