Bank of Ireland Reduces Loan Rate for Small Businesses

Bank of Ireland today (3 October 2007) confirmed that it has reduced its interest rate for small business customers with a reduction in the rate of its Developing Business Loan fund to 5.9% for new business with immediate effect. The rate reduction reflects the Bank of Ireland's commitment to be the bank of choice for small business by providing easier access to loan finance for start-up and early stage businesses. The key details of the Developing Business Loan fund are as follows:

Bank of Ireland's Developing Business Loan was launched as the first dedicated small business loan fund of its kind in the market in May 2006. The rate cut announced today further supports the Bank's commitment to small businesses and, in particular, to new business start-ups. With the average small business loan currently at €17,000, this fund is a strong offer for the segment and reflects Bank of Ireland's understanding of the difficulties that small and start-up businesses have in accessing finance.

Speaking about the new Developing Business Loan rate, Damian Young, Head of the Small Business Segment at Bank of Ireland, said: "We are very committed to supporting the needs of small businesses in Ireland. This new rate offers further opportunities for businesses to start and grow. There has never been a better time for new start-up companies in Ireland and we are seeing a generation of new businesses with the potential to grow and internationalise. Small business remains the backbone to our vibrant economy and key to the future success of business in Ireland".

Almost half of all businesses have a borrowing requirement, with the average small business loan value being approximately €17,000. Bank of Ireland currently approves in excess of 87% of all small business lending applications, with half of all applications getting an immediate decision in the branch, and the other half within 24 hours.

Ends

Contact:
Anne Mathews
Media Relations Manager
Group Corporate Communications on
Tel:01 604 3836 or 087 246 0358

Or

Cora Whyte on 01 604 3324

* Lending Terms and Conditions apply. Bank of Ireland is regulated by the Financial Regulator.

Notes to Editors

About Bank of Ireland Business Banking:

Bank of Ireland has the most comprehensive Business Start-Up package available to new businesses, featuring a business current account that has a range of banking services free of charge for two years, and a suite of internal and external offers specifically tailored for the new enterprise.

The Bank provides over 100 loans daily to the SME sector and currently approve in excess of 87% of all small business lending applications, with half of all applications getting an immediate decision in the branch, and the other half within 24 hours. In addition, Bank of Ireland is the only financial institution that will lend up to €25,000 to these companies without security.

Our service is delivered through a network of over 600 business bankers, including a Business Advisor in every one of our 270 branches nationwide. In addition, our Business On Line service gives business customers total control over their business finances 24 hours a day, seven days a week, saving them both time and money.