Microfinance Ireland Quarterly Report Q3 2020: Microenterprise Loan Fund Scheme (Microfinance Ireland)

Summary

• Since October 2012 the fund has received 7,339 applications and approved €57.2M of loans, a 47% approval rate.p.3
• €49.9M of loans have been drawn across 2,983 loans, with an average loan size of €17K.p.3
• New legislation increases Exchequer funding by €70m to €95m and borrowing powers to €100m.p.3
• In Q3 2020 the fund received 408 applications and approved €5.1M, a 47% approval rate.p.4
• New applications were suspended in early July due to unprecedented demand, and the fund relaunched at the end of August with loans capped at €25,000.p.4
• Of the 3,392 loans approved, 1,476 went to start-ups and 1,916 to existing enterprises.p.10
• Local Enterprise Offices referred 2,847 applications, 39% of all applications.p.12

Key insights

1. The fund provides loans of €2,000 up to €25,000 to micro-enterprises.p.3
2. 79% of approvals went to businesses employing 3 people or fewer and 44% to start-ups.p.3
3. 23% of loans were granted to Dublin and 77% to the rest of Ireland.p.3
4. The approval rate was 69% in Q2 2020 and 47% in Q3 2020.p.5
5. 1,834 sole traders, 1,365 private limited companies and 193 partnerships received loans.p.10
6. 74% of applications came from male promoters and 26% from female promoters.p.10
7. 366 appeals were made from inception and 72 were approved on appeal.p.11