Dáil Éireann Debate, Thursday - 22 November 2012
46. Deputy Charlie McConalogue asked the Minister for Jobs, Enterprise and Innovation if he is satisfied that the small and medium enterprise sector is receiving the credit it needs; the uptake to date regarding the credit guarantee scheme; and if he will make a statement on the matter. [51867/12]
View answerAs the Deputy will be aware my Department has recently introduced two targeted schemes to support an additional flow of credit into the economy namely the Microenterprise Loan Fund and the Credit Guarantee Scheme.
The Microenterprise Loan Fund will improve access to credit for microenterprises and facilitate the growth and expansion of viable businesses from all industry sectors across the country, which have been refused access to credit from the banks.
The Fund provides support in the form of loans for up to €25,000, available to start-up, newly established, or growing microenterprises employing less than 10 people, with viable business propositions, that do not meet the conventional risk criteria applied by banks.
The Credit Guarantee Scheme will facilitate up to €150 million of additional lending to eligible SMEs per annum. The Guarantee Scheme is intended to address specific market failures that inhibit bank lending to some commercially viable micro, small and medium enterprises, by providing a 75% State guarantee to banks against losses on qualifying loans to firms with growth and job creation potential.
The Credit Guarantee Scheme went live on Wednesday 24th October and at this early stage, the number of approved guarantees on Monday 19th November is two.
In addition, my Department is working closely with the Department of Finance and the Credit Review Office to evaluate evidence on credit availability and to ensure that the amount of credit flowing to the SME sector is maximised to facilitate sustainable job creation and retention.
