A new support program aimed at mentoring small Irish businesses has been launched by Microfinance Ireland (MFI) and the Local Enterprise Office network. The program will see businesses which have been approved a loan by MFI receive mentoring assistance from their LEO. The program builds on the existing partnership between MFI and LEOs that allows businesses to apply for loans through their LEO.
The news comes as MFI announced it will offer micro-businesses the opportunity to avail of a cut in its interest rates from next month.
Cutting interest for micro-businesses...
Micro-enterprises can apply for loans of between €2,000 and €25,000 directly to MFI, or indirectly through their LEO. From 1st July, businesses applying directly to MFI can avail of a standard rate of 7.8% APR, down from 8.8%. In addition, businesses applying via their LEO can borrow at an even lower rate of 6.8% APR, a highly competitive interest rate for those small businesses who are currently finding it difficult to access finance from traditional sources.
What does Microfinance Ireland do?
Microfinance Ireland wants to make it easier for businesses to start up, expand, succeed and create jobs. It is targeted at start-up or growing microenterprises across all industry sectors, working with businesses based in the Republic of Ireland, with less than 10 employees and a turnover of less than €2 million.
MFI helps by providing unsecured business loans of €2,000 to €25,000 for commercially viable proposals that do not meet conventional bank risk requirements or have even been declined bank credit.
MFI is a not-for-profit lender and aims to contact all applicants within 10 working days of their application.
To date, MFI has approved €14.1m in loans to 944 businesses. A total of 752 businesses applied for loans in 2015, compared with 508 applications for 2014, an increase of 48%. The average loan size approved during 2015 was €15,190. MFI loans have helped sustain and support a total of 2,148 jobs since the organisation’s founding in 2012.
How can I apply?
There are two ways of applying for a Microfinance Ireland loan. You can go directly to MFI or through your LEO. A strong business plan, realistic cash-flow projections and personal bank statements are required for applications. The MFI team and your LEO are more than happy to assist you in your application.
For more information
Check out Microfinance Ireland's website for more information.
Find your Local Enterprise Office.