Bank of Ireland Small Business Lending reaches Eur100 milestone

Threshold for loans increased from Eur65,000 to Eur150,000

Bank of Ireland Business Banking today announced that it has provided in excess of Eur100 million to over 8,000 small business customers through its specialised 'Small Business Loan' (SBL) in just 11 months since its launch.

In response to the positive reaction from small business customers, and in order to aid small businesses to further expand their operations, the bank has also increased the maximum value allowed under the scheme from Eur65,000 to Eur150,000.

On average 35 new SBL accounts are now activated on a daily basis. With rates starting from 4.75% the package offers the most competitive rate in the market place. For borrowings of Eur65,000, the rate is 3% cheaper than the nearest market competitor. SBL customers have also benefited from an accumulation of ECB rate cuts totalling 1.5% since its launch.

Mr Michael Gannon, Head of SME Supports in Bank of Ireland Business Banking said "The Small Business Loan package is an integral part of our overall commitment to the business sector and demonstrates our long term allegiance to meeting their individual needs. Managing finance is one of the most critical challenges faced by small and medium sized enterprises as they establish and expand their operations. Through the provision of the Small Business Loan we are therefore adding real value to the customer."

Interestingly, a large percentage of SBL lending is with businesses outside the Dublin region, with 15% located in the West of Ireland. Retail, Construction, Leisure, Agriculture and the Professional sector are among the main borrowers.
Interest rates for the Small Business Loan are calculated based on the loan value as opposed to the time for which the loan is required. This removes the need for customers to enter into ongoing rate negotiations with their bank.

Rates start from:

Mr Gannon concluded "Facilitating business expansion and business development are the primary objectives of the Small Business Loan. In essence, the loan was developed to meet the very specific needs of the small business customer providing cost effective solutions for their borrowing requirements. The incorporation of features such as instant loan approval, flexible repayment periods, no security requirement, no hidden fees or charges and keeping paperwork to a minimum has been key to the success of the Small Business Loan to date. Raising the maximum loan amount to Eur150,000 reflects our commitment to facilitating the growth of Ireland's business sector."

ENDS
Date: 28th July 2003

For reference:

Anne Mathews
Media Relations Manager
Group Public Affairs
Bank of Ireland
Ph. 01 6043836
Mob: 087 2460358

Michael Gannon
Head of Enterprise Support Unit
Business Banking
Bank of Ireland
Ph. 01 6653468

Dermot Nolan
Head of Strategy and Marketing
Business Banking
Bank of Ireland
Ph. 01 6043349