Dáil Éireann Debate, Thursday - 10 February 2022
76. Deputy Jennifer Carroll MacNeill asked the Tánaiste and Minister for Enterprise, Trade and Employment the plans that are in place for a successor scheme to the future growth loan scheme; and if he will make a statement on the matter. [6873/22]
View answerMy Department is currently leading a review of the Future Growth Loan Scheme (FGLS) to develop insights and intelligence which will assist me in the consideration of policy in the area of longer-term lending. The review will examine the benefits arising to SMEs and the State from the current FGLS. Evidence for the review is being collected via consultations with SMEs, industry bodies, policy stakeholders and lenders. It is anticipated that the study will be completed in Q2 of this year.
In parallel, talks are being held with the European Investment Bank and European Investment Fund as to what funding streams and guarantees are being made available in the coming year. Leveraging funding through these bodies lower the cost and risk to the Irish State. To further decrease the risk to the State, my Department is in ongoing consultation with the Strategic Banking Corporation of Ireland, which also provides counter guarantees.
The principal mechanism in finance being developed by the European Commission is the InvestEU programme. We are awaiting the related upcoming agreement between the Commission and the European Invest Bank. Once we have this agreement and the detail of the mechanisms available, my Department can design a new scheme with our partners.
It is my intention that any successor scheme to the FGLS would retain the positive features of that scheme including access to low-cost long-term lending and the removal of the requirement for personal guarantees or collateral for loans up to half a million euros.
