Microfinance Ireland
Lorna Coleman
Microfinance Ireland

Set up by the Government to provide loans to newly established or
growing microenterprises, with commercially viable proposals that
do not meet the conventional risk criteria applied by commercial
banks.

MFI is ‘additional’ lending which would not otherwise be provided by
banks. Banks remain the primary and dominant supplier of finance to
microenterprises.

Applicants should have a viable business plan and be able to
demonstrate that they have been refused conventional bank credit.

Loans to top up bank credit may be available in certain cases where it
is clear that the business would not go ahead without MFI
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Definition of a Microenterprise?
 Less than10 staff & turnover and/or Bal Sheet <
€2m
 Estimated to account for over 90% of businesses
in EU and Ireland
 May be a start up or an existing business
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Loans
 Loans from €2k to €25k (average loan size €16k at
present)
 Term three years
 Interest rate is 8.8%
 Loans will not be provided where venture capital
or grant aid is more suitable
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Assessment Criteria
• MFI will assess a loan application based on a number of criteria;
– A realistic business plan including cash flow projections
– Proven business models with prospect of near term cash flow
– The number of new jobs and social impact
– An interview with the entrepreneur to assess; skills, character,
viability of the plan and commitment to the business
– A financial commitment by the entrepreneur although not
mandatory is desirable
– Completion of a ‘start your own business’ course and / or
working with a mentor will be an advantage.
• Adverse credit history / absence of credit history will not preclude a
loan provided there if full disclosure and evidence that debts have
been dealt with honourably
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A good Business Plan
should include the following essential elements:
 Promoter’s experience and skill set to operate
the particular business
 Realistic cash flow projections for 3-years
 Evidence of repayment capacity
 Personal financial commitment
 Evidence of good market research
 Breakdown of how funds are to be utilised
 Unique selling points
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LEO / Microfinance Ireland
Loan Product
 Loan at 1% Discount compared to Direct Channel
 Application assistance by LEO to client
 Provision of mentoring as required by loan approval
 Local Loan application Assessment with final decision
resiting with Microfinance Ireland
Service Commitments
 Assistance by LEO as required by loan applicant
 Transparency with Client on Applications potential
 Local assessment signed off by Head of LEO
 8 Day turnaround of completed applications at LEO level
 2 Day turnaround of LEO assessment by Microfinance
Ireland and sign of by CEO.
HOW TO APPLY
•
Go to your LOCAL ENTERPRISE OFFICE
•
Complete an application form
–
–
A business plan
Three years cash flow projections
•
Supporting Documentation
•
LEOs will in the first instance assess (within 8 days)
•
MFI will finalise the loan offer letter etc within 2 days
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Application forms available from
www.localenterprise.ie
or
www.microfinanceireland.ie
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