Local businesses hit hard by the pandemic can now get low-interest loans from two Credit Unions in Kilkenny.
Castlecomer and St Canice’s have been included in the government’s Covid19 Credit Guarantee Scheme (more on that here).
It’s aimed at supporting local businesses that had more than a 15% reduction in turnover or profits due to Covid19.
Struggling entities can get loans of up to €150,000 at interest rates lower than normally available – even though there is a government premium that has to be paid of about 0.6%.
Castlecomer Credit Union CEO Gerry Reynolds says these loans are for small enterprise from the local area, telling KCLR News “The target would be small farmers, small to medium-sized companies be they retail, be they manufacturing and because of what has happened with their businesses will be coming under cash-flow or difficulties with regard to purchase of longterm machinery or assets and the monies are fully credit-assessed because it’s the taxpayers money that’s supporting it as well as our members’ money”.
He adds that the usual credit assessments still apply but they’ve be looking to check the books for 2019, noting “Even though the figures for 2020 because of Covid wouldn’t be good they’re not the figures that you base the bulk of your assessment on, you base it on your 2019 results which were pre-Covid and then on the potential projections they have for post-Covid”
