Peer-to-peer lending platform Linked Finance has received an additional €5m in funds under the Government’s Covid-19 Credit Guarantee Scheme (CCGS).

The company has now launched a new loan aimed at supporting small and medium businesses (SMEs) in the hospitality sector as it reopens.

Linked Finance is launching a ‘Recharge SMEs’ loan, which will provide pubs, restaurants, accommodation businesses, and cafes with a loan of up to €50,000 to help them reopen, restock and rehire as pandemic restrictions are eased.

The term of the loan is 13 months and no repayment is due for the first month.

Niall O’Grady, CEO of Linked Finance, said he was “delighted” the company has been approved for an additional €5m in lending under the CCGS.

“Being allocated a second tranches demonstrates the success of alternative lenders participating in the scheme, and shows the improving range of options there are for businesses looking to access finance fast and efficiently in a seamless online process,” he added.

Linked Finance can offer borrowers decisions on loans of up to €250,000 in under 24 hours from receiving their documents at interest rates starting at 4.75pc. The terms of the loans are for between six months and five years.

The interest rate charged will depending on the loan term and credit grading of the borrower.

In January, Linked Finance became the first non-bank lender to offer loans through the CCGS.

The CCGS is designed to offer low cost working capital and capital expenditure loans for businesses affected by the pandemic.

Under the CCGS applicants will also pay an additional risk premium charge to the Government for its provision of a capital guarantee covering up to 80pc of the potential capital loss in the event of default. This risk premium ranges from 0.15pc for a one-year loan up to 0.68pc for a six-year loan.

To date Linked Finance has funded over €10m worth of loans to SME customers under the scheme.

Linked Finance said it has experienced a strong start to the year in its loan book and where non-CCGS lending is also included it has facilitated almost €13m in lending to SMEs across Ireland to the end of April of the year, an increase of 19pc year-on-year despite the pandemic.