A new funding package has been announced to help owners of vehicles like taxis, hackneys, and limousines transition to an electric or hybrid model.

The Green Vehicle Loan (eSPSV) for Small Public Service Vehicles (SPSV) is part of a continued effort to increase green transport across Ireland.

To make public transport more sustainable, earlier this year the Department of Environment, Climate and Communications and Transport allocated €15m to assist the SPSV industry in transitioning to fully electric and zero-emission capable wheelchair accessible vehicles.

Announcing the new fund today, 09 September, Minister of State for Business, Employment and Retail, Damien English TD said: "It is very positive to see the development of this new eSPSV Business Loan by Microfinance Ireland for qualifying taxi, hackney, limousine and other SPSV businesses in Ireland. MFI have been at the forefront to the government's response to the pandemic with the administration of the Covid Business Loan scheme. This new loan demonstrates the cross-departmental links between my Department, the Department of Environment, Climate and Communications and Transport whereby taxi drivers and other SPSV owners, whose income has been severely reduced in the last 18 months, can access a loan to take advantage of the part grant being delivered by Government. We want the future to be green and this is a strong signal that our microbusinesses involved in transport can lead on this move into the future."

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Microfinance Ireland (MFI) can now assist many owner-operators in this sector, which has been badly affected by the pandemic, in using the existing Electric Vehicle part grant scheme announced this April by providing access to loans not otherwise available to them through mainstream banking.

Microfinance Ireland's CEO, Des McCarthy, added: "We are very pleased to support this important government initiative and to provide further help to small businesses in this sector. We are providing loan finance to those that are having difficulty in securing funding from banks and commercial lending providers due to the impact of the pandemic on their business but who now wish to replace their vehicle with a more sustainable model. If they are having difficulty in securing finance, they should talk to us to see if Microfinance Ireland can help."

The new Green Vehicle Loan is now open for applications.