Dáil Éireann Debate, Wednesday - 15 April 2015
216. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation if he will address a matter (details supplied) regarding credit for small businesses; and if he will make a statement on the matter. [14009/15]
Amharc ar fhreagraMy Department put in place two credit schemes in 2012: the Microenterprise Loan Fund and the Credit Guarantee Scheme. Microfinance Ireland (MFI) was established to manage and control the Microenterprise Loan Fund. I provided a €10 million Exchequer allocation to MFI in 2012 which will be supplemented by €5 million from the three main banks to cover the first 5 years of the Fund. There is scope within the legislation for further funding to be provided in the future.
MFI provides loans of up to €25,000 to start-up, newly established, or growing microenterprises employing less than 10 people, with commercially viable proposals that do not meet the conventional risk criteria applied by banks.
The latest figures which are published each quarter on my Department’s website show that MFI had, up until the end of 2014, received 887 applications with 704 applications fully processed. Overall there had been a 59% approval rating with loans of €6.3 million approved at that point. MFI applications are required to complete a standard loan application form which is available from MFI’s website.
The SME Credit Guarantee Scheme (CGS) provides a 75% State guarantee to banks against losses on qualifying loans to eligible micro, small and medium enterprises. and can facilitate up to €150 million of additional lending per year.
The latest figures which are published each quarter on my Department’s website, up to end of 2014, show that 162 CGS facilities totalling almost €22 million had been sanctioned resulting in 649 new jobs being created and 333 jobs maintained. Applications are made through participating lenders (currently Bank of Ireland, Allied Irish Banks and Ulster Bank), on a Borrower Scheme application form
Both credit schemes have been reviewed and my Department is working on implementing the review recommendations.
In addition to the above schemes, the Government through the NPRF has put in place an SME Credit Fund, Bluebay Ireland Corporate Credit I Limited and more recently established the Strategic Banking Corporation of Ireland (SBCI) to ensure access to flexible funding for Irish SMEs.
