SME Funding in Ireland – What’s New and What It Means

Recent data from banks and State agencies shows that the SME funding landscape in Ireland is shifting again as businesses move through 2025. Rising costs, mixed confidence levels and different lender behaviours are all influencing how firms approach borrowing and long-term planning. Below is a clear summary of what is happening and what it means for SMEs preparing for investment or refinancing.

Irish SMEs remain concerned about rising input costs, particularly materials, wages and energy. Access to finance continues to feature as one of the top risks for the year ahead. The latest SBCI Outlook Report notes that more SMEs are now spreading their options by combining bank and non-bank lenders, reflecting a more flexible approach to funding.

At the same time, banks report that credit standards remained steady during Q2 2025. The Central Bank’s Bank Lending Survey shows no significant tightening, which is positive for borrowers. Banks also expect demand for loans to increase in the coming months as businesses look ahead to 2026 and begin planning for expansion, equipment upgrades or refinancing.

Lender activity, however, is not uniform. AIB has revised down its 2025 SME loan growth forecast to approximately 3 percent from 5 percent earlier in the year, citing softer demand. Despite this, the bank expects loan growth to improve across 2026 and 2027. In contrast, Permanent TSB recorded an increase of about 23 percent in business banking and asset finance lending during Q2 2025, suggesting renewed momentum among smaller lenders and an appetite to support SME investment.

How NextStep Can Help SMEs Now

• Evaluate the mix of funding that best suits your business, not just the option you initially consider
• Turn your financials and plans into clear, funder-ready proposals
• Step in when banks say no, review credit reports, strengthen declined applications or combine grants with loans

If you are planning to apply or revisit a previous application