Tuesday, 3 December 2019

Questions (301)

Robert Troy

Question:

301. Deputy Robert Troy asked the Minister for Business, Enterprise and Innovation the value of drawdowns issued under the credit guarantee scheme to date; the value of approvals to date; the detail of each drawdown by county and approval; the breakdown of drawdown and approvals by firm size of less than 10, 11 to 49, 50 to 249 and more than 250 employees in tabular form. [50033/19]

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Written answers (Question to Business)

The Credit Guarantee Scheme provides a State guarantee through my Department to accredited lenders (Allied Irish Banks, Bank of Ireland and Ulster Bank Ireland) of 80% on eligible loans or Performance Bonds to viable Micro, Small and Medium-sized Enterprises (“SMEs”). The Guarantee is paid by the State to the lender on the unrecovered outstanding principal balance on a Scheme Facility in the event of a borrower defaulting on the Scheme Facility repayments.

The purpose of the Scheme is to encourage additional lending to SMEs, not to substitute for conventional lending. SMEs are thus enabled to develop a positive track record with the lender with the objective of returning to standard commercial credit facilities in time.

Since the launch of the Scheme in October 2012 a total of €123,261,390 has been sanctioned by participating lenders, with an overall drawdown of €90,272,844 for the period up to the end of the third quarter of 2019, as reported by the Strategic Banking Corporation of Ireland which administers the Credit Guarantee Scheme.

Table 1 below provides reported data up to the end of third quarter of 2019 on a county basis.

Table 1 – Sanction Amounts and Drawdowns on a County Basis

County

Sanctioned Amount (€)

Value of drawdowns (€)

Carlow

2,326,000

1,660,000

Cavan

0

0

Clare

2,218,250

1,542,000

Cork

11,258,000

8,358,000

Donegal

880,000

880,000

Dublin

53,928,262

41,184,700

Galway

6,248,500

3,848,500

Kerry

3,180,000

2,480,000

Kildare

6,954,500

5,384,500

Kilkenny

1,220,000

495,000

Laois

2,454,950

1,214,950

Leitrim

1,100,000

1,000,000

Limerick

10,333,594

7,534,594

Longford

0

0

Louth

2,117,000

1,802,000

Mayo

1,653,100

983,100

Meath

2,587,500

1,790,000

Monaghan

250,000

250,000

Offaly

1,076,500

946,500

Roscommon

680,000

680,000

Sligo

57,000

57,000

Tipperary

1,844,000

1,216,000

Unknown

1,967,000

0

Waterford

1,251,234

1,000,000

Westmeath

2,242,000

2,022,000

Wexford

1,716,000

1,516,000

Wicklow

3,718,000

2,428,000

Total

123,261,390

90,272,844

Note - in some cases the bank did not report the county and these are categorised as unknown

Data in respect of the size of the enterprise benefitting from the Scheme is only available for the period commencing from 1 July 2018 – the introduction of the revised scheme. Table 2 below provides this data for the period from 1st July 2018 up to the end of the third quarter of 2019, as reported by the Strategic Banking Corporation of Ireland which administers the Credit Guarantee Scheme.

Table 2 – Sanction Amounts and Drawdowns by Enterprise Size

Employee Range

Sanctioned Amount (€)

Value of drawdowns (€)

Less than or equal to 10 employees

16,649,063

10,581,500

11 to 49 employees

11,668,234

9,619,500

50 to 249 employees

1,650,000

1,650,000

250 or greater employees

0

0

Unknown

80,000

0

Total

30,047,297

21,851,000

Note: In some cases the bank did not report the enterprise size and these are categorised as unknown