SBCI launches €150m low-cost loans for SMEs to cut their energy costs and reduce carbon emissions

SBCI launches €150m low-cost loans for SMEs

  • Available through Bank of Ireland immediately; multiple other on-lenders to follow shortly
  • Discounted loans/hire purchase for investing in a range of energy saving equipment including building retrofit, insulation, solar panels and heat pumps to reduce energy bills for SMEs and farmers
  • Rates as low as 4% to be made available; amounts from €10k to €150k; terms up to 10 years

11 July 2022: The Strategic Banking Corporation of Ireland (SBCI) has today launched its €150m Energy Efficiency Loan Scheme to help SMEs and farmers cut their energy bills and reduce their carbon emissions by investing in energy-saving measures.

The scheme will offer discounted term loans, asset finance and hire purchase to SMEs and farmers planning investments in a range of energy saving equipment including solar panels, heat pumps, LED lightning and other energy-saving technology.

Lending will benefit from reduced interest rates, with rates as low as 4% to be made available and finance amounts ranging from €10,000 to €150,000 over terms of up to 10 years.

The new scheme is available through Bank of Ireland immediately, with multiple other on-lenders due to follow in the coming weeks.

The SBCI is launching this scheme because:

  • It will help SMEs and farming businesses to reduce their energy costs over the medium term and help to alleviate the current pressures arising from rising costs and tighter margins
  • It allows Irish SMEs to access a pan-European SME support scheme that can only be offered through EU member states’ national promotional institutions such as the SBCI
  • It builds on the SBCI’s strategy of supporting Irish businesses in their transition to sustainability and expanding into new market segments and loan types where SMEs need lower rates and greater competition
  • It extends the SBCI’s risk-sharing capabilities following its successful diversification into this form of lending in recent years
  • It supports the Government’s wider plans to accelerate Ireland’s transition to a Net Zero economy
  • It will enhance the sustainability of participating SMEs and farming businesses

Minister for Finance, Paschal Donohoe TD, said

“The Government is committed to supporting Irish SMEs. We understand that businesses face ongoing challenges arising from changes taking place in our economy and the rising cost of energy. At the same time there are tremendous opportunities for Irish companies. Businesses using the Energy Efficiency Loan Scheme can enhance their competitiveness, address their energy costs and boost their reputation in meeting customers’ sustainability expectations. I urge businesses to exploit the new investment opportunities this creates.”

SBCI CEO, June Butler said:

“This is a really attractive new scheme for SMEs that are looking to reduce their energy costs and their carbon emissions. We are conscious that many businesses continue to grapple with the immediate challenges caused by Covid, Brexit and economic uncertainty arising from the terrible events in Ukraine, but we know SMEs that have the capacity to invest in energy efficiency need better financing options, and this scheme is designed for them.

The scheme underlines our commitment to bringing more and more SME-friendly lending products to market, helping SMEs reduce their costs, manage their cashflow, support jobs and ultimately make their business stronger.

We are delighted to launch a scheme that will make SMEs more sustainable with lower carbon emissions and we encourage as many SMEs as possible to make the most of the discounted loan rates it offers.”

Gavin Kelly, CEO Retail Ireland, Bank of Ireland Group said:

“Bank of Ireland is delighted to make this new Energy Efficiency Loan Scheme available to customers, helping them to cut their energy bills, run a more energy efficient business and support the national objective of reducing carbon emissions. As the first Irish bank to offer immediate access to this scheme we believe that initiatives of this type are essential, enabling businesses to future-proof their sustainability.

We are also delighted once again to be partnering with the SBCI in launching this scheme, having previously worked with them to provide valuable funding to SMEs nationwide. Numerous cost pressures are currently placing an added burden on a wide range of businesses, so the introduction of the Energy Efficiency Loan Scheme is timely, and I would encourage eligible businesses to review how they can avail of its benefits.”