The new €2bn Credit Guarantee Scheme is now open for applications.

The programme is aimed at businesses that have lost 15% of their turnover as a result of COVID-19.

Loans of between €10,000 and €1m are available – with 80% of the loans guaranteed by the State.

Launching the scheme this morning, the Tánaiste Leo Varadkar said the scheme represents the biggest ever state-backed loan guarantee in Ireland.

“The past few months have been extremely difficult for Irish businesses,” he said.

“We have seen our small and medium enterprises work hard to adapt and to continue trading in the face of this profound disruption. The Government is determined to help businesses as they operate in a fundamentally changed trading environment.”

He said the “unprecedented measure will ensure businesses have access to the finance they need at this unprecedented time.”

Companies looking to take advantage of the scheme will have the borrow through AIB, Bank of Ireland and Ulster Bank; however, additional lenders are expected to be included in the coming weeks.

The loans will be repayable over a six-year period.

Applications must be made this year.