Dáil Éireann Debate, Wednesday - 15 January 2014
303. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the total amount of moneys lent by Microfinance Ireland since its inception to the end of December 2013, broken down by month and by county; the number of jobs sustained by this investment; the reasons the organisation did not meet its targets for 2013; his plans to address this in 2014; and if he will make a statement on the matter. [1143/14]
View answerThe Microfinance Loan Fund Scheme facility was introduced in October 2012 following demands from business interest for the introduction of supports for microenterprises in a difficult economic environment. It is brand new to the Irish market and in just over a year it has now developed a presence in the Irish financial market.
As of 3 January 2014 MFI, has approved 139 applications to the value of €2.16m supporting 313 jobs. My Department publishes quarterly progress reports on the Microenterprise Loan Fund on my Department’s website www.enterprise.gov.ie. The progress report detailing the analysis and performance for the quarterly period ending 30 September 2013 is available on my Department’s website. I intend to publish the next progress report for the period to December 2013, once the report has been finalised.
The key challenge for MFI is to ensure that people are aware that there is support for new and existing viable micro enterprises with perceived or real higher trading risk that have been refused credit by banks. In that regard MFI has been engaged with key influencers across the country to get that message across. There are on-going promotional and awareness activities to ensure that awareness of the scheme is promoted to its full potential amongst relevant micro business groups across all sectors of business. MFI has also undertaken a number of publicity and awareness raising activities since it began lending, including radio advertisements and attending local business network meetings. In addition, the Minister for Small Business and I promote the scheme at every available opportunity, locally, regionally and nationally.
Take-up to date has not been as high as was originally anticipated and this may be a reflection of the muted level of demand for credit as evidenced in the Department of Finance commissioned SME Credit Demand Surveys (30% of microenterprises sought loans from April-September 2013).
My Department and the Microenterprise Loan Fund operator, MFI have committed significant time and resources to the establishment and operation of this Fund. While my officials engage with MFI on an on-going basis in how the Fund is being delivered, I will commence a review of the operation of the Microenterprise Loan Fund Acts 2012 by July 2014. The purpose of the review will be to enhance the uptake and impact of the Fund.
