The purpose of the SBCI is to deliver effective financial supports to Irish SMEs. The SBCI does not provide funding directly to small businesses, rather it operates an on-lending model which involves working through partner finance providers, known as on-lenders. The SBCI currently has three bank and three non-bank on-lending partners.
I take it that the Deputy is asking whether the SBCI makes it a requirement for its on-lenders to seek a tax clearance certificate from the SME borrowers that receive SBCI loans. I have been advised by the SBCI that seeking tax clearance certificates from borrowers is a matter for the on-lenders. They provide lending into SMEs in accordance with their normal credit policies and procedures.
Due to its on-lending model, the SBCI’s direct relationship is with its on-lending partners. The SBCI enters into facility agreements with its on-lenders and these agreements set out the obligations in relation to the funding provided by the SBCI, including terms and conditions to protect taxpayers from potential losses.