Micro-Businesses To Benefit From MFI Tax Cut

Microfinance Ireland (MFI) is to offer micro-businesses the opportunity to avail of a cut in its interest rates - down by 1% - from 01 July 2016.

MFI is a not-for-profit Government Agency that provided funded finance to micro-enterprises.

Micro-enterprises can apply for loans of between €2,000 and €25,000 directly to MFI, or indirectly through their Local Enterprise Office.

From 01 July, applicants direct to MFI can avail of a standard rate of 7.8% APR, down from 8.8%. In addition, applicants to MFI via their Local Enterprise Office (or LEO) can borrow at an even lower rate of 6.8% APR, a highly competitive interest rate for those small businesses who are currently finding it difficult to access finance from traditional sources.

Welcoming the announcement, Minister for Jobs, Enterprise and Innovation Mary Mitchell-O'Connor, said: "I welcome this announcement from Microfinance Ireland. It is very much in line with the thrust of the Government's Action Plan for Jobs, to make loans to micro-enterprises right across the country more affordable.

"I am very much aware that micro-enterprises are at the heart of rural Ireland and I want to create an environment for them to grow and develop right across the country. The introduction of valuable business supports available through the local enterprise offices to aid small enterprises will, I am sure, increase their chances of commercial success, result in the creation and maintenance of jobs, and greatly help in improving the economy overall."

(MH/LM)