Dáil Éireann Debate, Thursday - 10 October 2013
39. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation the support he is providing to small and medium-sized enterprises to access credit; and if he will recommend new packages of measures to support indigenous enterprises as part of budget 2014. [42574/13]
View answerAccess to finance remains a major concern for business and is also a major concern for Government in responding to the needs of business. In this respect, the Government is focused on delivering on a practical programme of actions that can achieve positive improvements in the overall operating environment for SMEs and improving access to credit is of course a priority for the Government.
Last year I introduced two targeted schemes to support an additional flow of credit into the economy, namely the Microenterprise Loan Fund and the Credit Guarantee Scheme to positively impact on job creation, retention and sustainability.
The Microenterprise Loan Fund improves access to credit for microenterprises and facilitates the growth and expansion of viable businesses with less than 10 employees from all industry sectors across the country, which have been refused access to credit from the banks. Support is in the form of loans for up to €25,000, available to start-up, newly established, or growing microenterprises, with viable business propositions, that do not meet the conventional risk criteria applied by banks after one full year in operation.
The SME Credit Guarantee Scheme (CGS) supports SMEs who, because of lack of collateral or because of the sector they operate in, face difficulties in accessing traditional bank credit. Commercially viable, well performing micro, small and medium enterprises that have a solid business plan and a defined market for their products or services, and can demonstrate their ability to repay the loan are the target of this scheme. The CGS is currently being independently reviewed to help improve the Scheme for all businesses. I intend taking appropriate action as a result of the review to ensure use of the Scheme is maximised and a report will be published shortly.
In addition to my Department’s work in this area, my colleague, the Minister for Finance, has set the pillar banks’ lending targets so that they rise incrementally with expected demand, with targets of €4bn in 2013, increased from €3.5bn in 2012. The Department of Finance also continues to conduct bi-annual surveys of SMEs to assess credit demand and loan approval rates.
I will of course, with my Government colleagues, be keeping the requirements of SMEs at the centre of the 2014 Action Plan for Jobs and the 2014 Budget.
