Under 5% of funds from state’s €2bn credit scheme have been drawn down

Half of all applicants to the Credit Guarantee Scheme are being rejected by the banks

Some 3,042 applications were received from firms looking to access loans under the scheme to a value of €191 million. Picture: iStock

Less than 5 per cent of the funds from the state’s €2 billion flagship lending scheme to assist small firms through Covid-19 has been drawn down.

The Credit Guarantee Scheme, which sees the state absorb the majority of potential losses, has loaned just over €84 million to 1,657 firms, according to figures released by the Department of Business, Enterprise and Innovation.

The figures cover the period from the scheme’s launch late in the summer until ...