PTSB is joining the Government's €500m Growth and Sustainability Loan Scheme for Irish SMEs, operated by the Strategic Banking Corporation of Ireland (SBCI).
PTSB said it will use the Growth and Sustainability Loan Scheme to offer €70m in loans to SMEs.
The bank will offer loans from €25,000 to €3 million for terms from seven years up to 10 years, with loans of up to €500,000 available on an unsecured basis.
The loan scheme is designed for SMEs (including farmers, fishers, foresters and food businesses) that are investing in their growth, resiliency, or investing in climate action and environmental sustainability measures that will enhance their performance.
PTSB said this is the latest stage in its expanding business banking proposition, building on its acquisition of Ulster Bank's performing micro-SME loan book, its entrance into the asset finance market with the launch of PTSB Asset Finance.
The bank noted that its SME lending in 2023 grew by 11% year on year.
PTSB's Retail Banking Director Patrick Farrell said the loan scheme allows businesses to incorporate sustainability into their business practices and invest in their growth and resilience.
"As the impacts of climate change become more severe and widespread, it is important that we support and enable businesses to navigate the transition to a low-carbon economy. Our partnership with SBCI further enables us to play our part in addressing the global climate crisis, while providing opportunities for businesses to unlock their potential and grow," Mr Farrell said.
June Butler, the SBCI's chief executive, said that PTSB joining the Growth and Sustainability Loan Scheme will widen the reach for businesses seeking financing for a longer term.
"Giving SMEs access to the finance they require to invest for their future is vital. At SBCI, we are committed to supporting businesses making the strategic investments needed to grow, expand, and become more sustainable and profitable," she added.
Minister for Enterprise, Trade and Employment Peter Burke said the €500m Growth and Sustainability Loan Scheme provides long-term finance at a lower cost which is critical funding for SMEs to facilitate growth, develop their products and services, invest in energy efficiency and sustainability.
"Climate and environment are central issues to competitiveness and business success and this scheme will act as an enabling instrument towards these goals. Loans for climate action and environmental sustainability purposes will also benefit from an additional interest rate discount," Mr Burke said.
Minister for Finance Michael McGrath said that SMEs are at the heart of the Irish economy, creating employment and economic prosperity throughout the country.
He noted that 30% of the scheme's lending capacity is targeted to SMEs investing in the environmental sustainability of their business with these loans benefitting from a further 'green' interest rate discount.
"I welcome PTSB joining as on-lender to this market, as they launch both the growth and sustainability elements of this important scheme," he added.
Minister for Agriculture, Food and the Marine Charlie McConalogue said the agri-food sector has faced many challenges in recent years and providing access to finance ensures businesses can continue to innovate and grow.
"Funding will be available for both green and growth purposes to facilitate strategic investment for eligible businesses, including farmers, fishers, foresters, and food businesses, to ensure continued viability and environmental sustainability into the future," he stated.
