Dáil Éireann Debate, Tuesday - 20 October 2015
266. Deputy John McGuinness asked the Minister for Finance the amount of money the Strategic Banking Corporation of Ireland has loaned to Irish businesses; and if he will make a statement on the matter. [35998/15]
View answerThe Strategic Banking Corporation of Ireland (SBCI) was incorporated in September 2014 and its goal is to ensure access to flexible and lower cost funding for Irish SMEs. The SBCI launched its first product programme on the 19th February 2015, and lending to SMEs commenced on the 9th March 2015 through both Bank of Ireland and Allied Irish Banks Plc. An initial sum of €400m has been allocated between Bank of Ireland and Allied Irish Banks Plc. for lending to SMEs.
Up to 30 June 2015, the SBCI had provided almost €45 million worth of discounted interest rate loans to 1,626 Irish SMEs. 90% of loans were for investment purposes and the average loan size was €27,500. The Agriculture sector accounted for nearly a third of all loans. There was a strong regional spread of loans with 85% of all loans being granted to regionally based SMEs. The SBCI will publish a further update on its lending activities in January 2016.
The Government's aim for the SBCI is to enhance the range and profile of SME finance providers in Ireland, and thereby increase competition for SME lending. The SBCI will achieve this by working with existing and new providers to develop specific funding products and by supporting new entrants to the SME lending market through allocating the remaining €400m to a number of new and non-traditional SME finance providers for onward disbursement to the SME sector.
