Dáil Éireann Debate, Thursday - 1 December 2016
153. Deputy Niall Collins asked the Minister for Finance the action he is taking to increase the rate of credit lending to businesses via the Strategic Banking Corporation of Ireland; the level of take up from the fund by businesses to date; and if he will make a statement on the matter. [38270/16]
View answerThe Strategic Banking Corporation of Ireland (SBCI) began lending in March 2015. Its goal is to increase the availability of low cost, flexible funding to SMEs. The SBCI channels its funds through lending partners known as on-lenders. The SBCI currently has three bank and five non-bank on-lending partners.
The level of lending to SMEs is to a large degree driven by market demand, and the SBCI is engaged with a range of potential new on-lenders to broaden its distribution capability and market coverage. In doing so, the SBCI is seeking to deliver a wide variety of financing products to Irish SMEs. In this regard, it is encouraging to note that FEXCO Asset Finance were announced this week as the SBCI's newest on-lender and will provide leasing and hire purchase finance to Irish SMEs.
To the end of September 2016, over 10,600 SMEs, operating across all business and economic sectors of the Irish economy, have benefitted from €458 million of SBCI loans. There is a broad geographical spread of the SMEs supported with the majority of them based outside Dublin.
The SBCI is working on a number of projects, with the aim of increasing finance options for SMEs, and it is expected that announcements will be made in the coming months.
