Irish SMEs, farmers and other rural businesses will have access to significantly more long-term finance after gov.ie announced a major expansion of the Growth and Sustainability Loan Scheme. The lending capacity will double from €500 million to €1 billion, while the scheme will remain open until 30 June 2029.
Growth and Sustainability Loan Scheme reaches €1 billion
The announcement was made by Peter Burke, Minister for Enterprise, Tourism and Employment, and Martin Heydon, Minister for Agriculture, Food and the Marine. The expanded programme is designed to help businesses invest in growth, productivity, competitiveness and more sustainable operations.
Since lending began in September 2023, approximately 2,000 businesses have used the scheme, with the original funding allocation now substantially deployed. The new €500 million tranche is intended to meet continued demand for affordable, longer-term investment finance.
The scheme is managed by the Strategic Banking Corporation of Ireland (SBCI) in partnership with the European Investment Bank Group, the Department of Enterprise, Tourism and Employment and the Department of Agriculture, Food and the Marine.
What businesses can use the funding for
Eligible applicants may use loans for a broad range of investments, including:
- Business expansion and new equipment
- Innovation, research and development
- Digitalisation and artificial intelligence
- Energy efficiency and renewable energy
- Climate action and environmental improvements
- Productivity, resilience and premises upgrades
At least 30% of total lending will continue to be directed towards environmental sustainability projects. Eligible green investments may also qualify for additional interest-rate discounts.
Participating lenders and eligibility
The Growth and Sustainability Loan Scheme is available through AIB, Bank of Ireland, PTSB, Close Brothers and Finance Ireland. AIB, Bank of Ireland and PTSB have reopened for applications, while the remaining providers are expected to accept new applications in the coming weeks.
Loans may be available on more favourable terms than standard commercial lending, including unsecured borrowing of up to €500,000. The scheme supports SMEs across Ireland, including farmers, foresters, fishers, horticultural businesses and food enterprises.
The expansion also includes recipients of the Bord Iascaigh Mhara Young Fisher Scheme grant. This can help new entrants bridge the gap between grant approval and the upfront finance needed for vessel investment and business establishment.
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Support for regional and sustainable growth
Government ministers said the extended scheme should give businesses greater confidence to plan investments over several years. The initiative is particularly relevant as companies respond to changing technology, energy costs, climate requirements and international competition.
The programme also reflects cooperation between government, the SBCI, the EIB Group and participating financial institutions. Through that partnership, the scheme aims to improve access to finance for businesses that may face difficulty securing suitable long-term lending through conventional channels.
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What the announcement means for SMEs
For small and medium-sized businesses, the expanded lending pool may provide an opportunity to invest without relying solely on short-term credit. Businesses should review the scheme’s current eligibility rules, prepare a detailed investment plan and contact a participating lender for application requirements.
The scheme’s focus on sustainability, digital transformation and productivity also aligns with wider national priorities involving Enterprise Ireland, IDA Ireland, Finance and Climate Action. However, approval remains subject to the relevant lender’s assessment and the programme’s terms.
The key takeaway: the Growth and Sustainability Loan Scheme now offers up to €1 billion in total lending and is extended to 2029, giving more Irish businesses access to longer-term finance for growth, innovation and sustainable investment.
Article/Image Courtesy: gov.ie
