Dáil Éireann Debate, Tuesday - 24 March 2015
321. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the position in respect of the 41% of microenterprises who applied for funding under the microenterprise loan fund scheme which were rejected in the period 1 October 2012 to 31 December 2014; his plans to address concerns regarding this rejection for funding; and if he will make a statement on the matter. [12121/15]
View answerThe Microenterprise Loan Fund Scheme facility was introduced in October 2012 following demands from business interests for the introduction of supports for microenterprises in a difficult economic environment.
The Scheme provides loans of up to €25,000 to start-up, newly established, or growing microenterprises employing less than 10 people, with commercially viable proposals that do not meet the conventional risk criteria applied by banks. To be eligible for a loan, persons must possess a business plan, must have a commercially viable proposal, must confirm that they have been refused credit from a bank, and must have the capacity to repay the loan.
Microfinance Ireland (MFI) was established to manage and control the Fund. It has the appropriate credit expertise and the corporate governance disciplines to oversee the effective operation of the Fund. I am not involved in the day to day decision making activities of MFI.
As planned, and in accordance with Section 22 of the Microenterprise Loan Fund Act 2012, I commenced a review of the performance of MFI within 2 years of the passing of the legislation. My officials have been actively engaged with representative organisations, the various banks and the credit union movement, MFI and the Local Enterprise Offices (LEOs) in completing this review.
The topics raised during these consultations included the issue of removal of the requirement of a formal or informal rejection from the bank, an automatic referral system for rejected bank applications and improved promotional and marketing opportunities.
I have been informed by my officials that the Review will be published shortly and that actions to implement its major recommendations have already been put in train.
