COVID19 Ireland: Credit Guarantee Scheme Extended

In our previous industry update¹, we discussed the creation of the COVID-19 Credit Guarantee Scheme (the "Scheme"), how it applied, and how it would operate. Over one year from the outset of COVID-19, we examine the Irish government's recent decision to extend the Scheme from 30 June 2021 to the end of 2021.

Background

Originally envisaged as a temporary measure, the Scheme, the largest state-backed loan guarantee scheme in the history of the Irish state, offers an 80% government guarantee to facilitate up to €2 billion in lending to participating small and medium sized enterprises ("SMEs"). With uncertainty over vaccine availability and rollout, the government's decision to extend the Scheme offers a lifeline to struggling SMEs.