Bank of Ireland launches €250m fund to support Irish businesses

- Short/medium term working capital for SMEs
- Available to new and existing customers

Bank of Ireland today (Monday 1 December 2008) announced a new €250m Business Support Fund to assist with the capital requirements of trading businesses who are looking to expand or are experiencing working capital challenges in the current economic climate. The aim of the fund is to provide businesses with finance to support their short/medium term needs. It will be available to new and existing SME customer at a variable interest rate of 7.5%. Flexible repayment terms are available.

Commenting on the launch of the fund, Damian Young, Head of Small Business, Bank of Ireland Business Banking said: "We acknowledge that the challenging market conditions are having a negative impact on many SMEs across the country. Extension of debtor payment days, reduced consumer spending and erosions in business margins are causing significant pressure on the cash flow of small businesses. More and more businesses are experiencing pressure on their day to day capital requirements. We are committed to supporting small businesses during this period and this fund is confirmation of our commitment to this key sector.

"Many businesses need a cash injection and this fund is designed to allow SMEs to extend their current financing requirements to meet their business needs. This fund will enable customers extend or restructure their existing facilities or introduce new facilities into the business.

"The fund further enhances Bank of Ireland's commitment to the SME sector. The Bank currently has a comprehensive offering for small businesses. For early stage/starts ups, we offer the Developing Business Loan, while the Small Business Loan caters for established businesses from all sectors of the market to fund their growth and development. In addition, the Bank offers cash flow solutions through its Invoice Finance product, business cards and asset finance products", added Damian Young.

The new €250m Business Support Fund is part of a series of initiatives in support of the SME sector. The Bank is in advanced discussions with the E.I.B. in order to further strengthen its support offering to SMEs, thus emphasising its commitment to this sector.

Key features of the fund are as follows:

• Flexible payment options are available, including a moratorium on capital repayments for period of 12 months.
• Terms of the loan will depend on the business needs but may be extended for a period of up to seven years.
• The Business Support Fund will be provided as a term facility only with no arrangement fee.
• The fund will be open to sole traders, limited companies and partnerships. A trading SME is defined as businesses that are generating revenue and have working capital needs.
• Businesses must be fundamentally sound and must demonstrate their ability to trade through the current climate. They must also demonstrate the capacity to repay the loan.
• Businesses accessing capital under this fund will be required to provide up to date financial information (e.g. management accounts) and other information such as a statement of their assets and liabilities projections, etc.
• Security will be required on a case by case basis in line with the Bank's normal lending policy.
• Personal guarantees may be requested from directors of limited companies in line with normal lending requirements.

Ends

Contact:
Anne Mathews
Media Relations Manager
Group Corporate Communications
Tel: 00 353 1 604 3836 / 00 353 87 246 0358