The Strategic Banking Corporation of Ireland, the agency established by the Government to offer competitive lending rates for small businesses here is to make an additional €50m available for firms to invest in assets such as vehicles, machinery and equipment.
The funding will be channelled through the privately-owned financial services group, Finance Ireland, headed by former Permanent TSB executive, Billy Kane.
It will offer two to five-year loans for a range of leasing, hire purchase and contract hiring loan arrangements.
There is no upper or lower limit on the loans and Finance Ireland will make them available at a 1.9% discount to current rates, which are understood to average about 8%.
The Strategic Banking Corporation is funded by low-cost capital from the former Pension Reserve Fund, the European Investment Bank and the German State Development Bank, KfW.
It has an initial fund of €800m and made the first €400m of this funding available through AIB and Bank of Ireland in the Spring, for general lending.
