The Covid-19 crisis has hit small and medium size enterprises
(SMEs) hardest, SMEs are crucial to overall growth
in the economy and in recognition of this the Irish government is
introducing new policy tools to help SMEs.
The Credit Guarantee (Amendment) Act 2020 (the 2020
Act), to implement the Covid-19 Credit Guarantee Scheme
(CCGS), was recently enacted to encourage
additional lending to SMEs by offering a partial government
guarantee (currently 80%) to lenders against losses on qualifying
loans to eligible SMEs.
The 2020 Act amends the Credit Guarantee Act 2012 (the
2012 Act) (which provides for an existing SME
credit guarantee scheme). The 2020 Act has made two main changes to
the 2012 Act, namely: (1) to substantially increase monetary limits
on the credit available and potential liability of the State in
respect of the CCGS; and (2) extend the classes of SMEs to which
the CCGS may apply.
