Dáil Éireann Debate, Wednesday - 29 February 2012
17 Deputy Willie O’Dea asked the Minister for Jobs, Enterprise and Innovation when it is expected the partial credit scheme and the micro finance scheme will be published; and if he will make a statement on the matter. [11535/12]
View answerWith regard to the Temporary Partial Credit Guarantee Scheme, an Operator has been selected through a public tendering process and will shortly be contracted by my Department to act as the agent for the practical oversight, management and operation of the Scheme. Primary legislation to underpin the Scheme is being urgently progressed with the Attorney General's Office, and a Credit Guarantee Bill will be published during this Spring session. The Guarantee Scheme will go live as soon as possible following enactment of the legislation in Quarter 2 2012.
I am currently finalising the delivery structures the Microfinance Loan Fund to provide loans to the microenterprise sector. This Fund is designed to stimulate lending to sustainable microenterprises and is targeted at start-up, newly established, or growing micro enterprises across all industry sectors, employing not more than 10 people. It will provide loans of up to €25,000 for commercially viable proposals that do not meet the conventional risk criteria applied by commercial banks.
The Government recently approved the allocation of €10 million as seed capital for the Fund. It is anticipated that the Fund will supplement this seed capital by leveraging further funding from private sources, including the banks.
Following establishment of the Microfinance lending facility, application will be made for the EIF guarantee facility. A rigorous due diligence process is required to secure EIF accreditation. Following EIF approval of the guarantee facility, and subject to completion of all administrative and corporate governance requirements, it is anticipated that the Loan Fund will become operational by mid-year.
