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The AIB Helps Small Businesses
In Ireland, the AIB has launched a €100 million fund which will help business that were established less than three years ago. The fund will be used to provide low-interest loans for early stage businesses. The loans will be for amounts of up to €60,000 at the interest rate of 6.25% variable.
This loan is now the best rate available in Ireland. Before the AIB announced the new loans for early stage businesses, the best rate was 9.5%. The Bank of Ireland previously had very competitive loan rates for small businesses, having a tiered rate of 7.95% and upwards for loans of less than €25,000. The new loan by the AIB is expected to start competition from other lenders in Ireland, who are eager to gain the custom of Ireland's small businesses. Other major lenders to businesses in Ireland include Ulster Bank, NIB, the Bank of Scotland and ACC Bank.
This is only one of the initiatives by the AIB to help SMEs. The AIB is committed to the SME market and believes it will have a level of 250,000 business by the end of this year.
The AIB has also become involved with the Small Firms Association (SFA). The AIB will help qualifying small businesses by meeting the cost of the first year for membership in the SFA. The SFA provides small businesses with business advice and support from experts.
The AIB has also launched a series of briefings for SME regional businesses. The briefings will be given by AIB Chief Economist, John Beggs. The series is titled "Propsects & Possibilities". The briefings will be held in different locations around Ireland during the next four months. The topics to be covered include interest and exchange rates and property prices.
Head of AIB SME Strategy, John Kelly, says AIB has a history of supporting business owners. He says the initiatives will cement their number one position is helping business owners. It is estimated that 18,000 new businesses were started in 2006 in Ireland.
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