Dáil Éireann Debate, Tuesday - 17 January 2017
351. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he expects to continue to encourage the banking sector to meet the requirements of small and medium-sized industry and the retail or commercial sector; and if he will make a statement on the matter. [1978/17]
Amharc ar fhreagraGovernment policy is focused on ensuring that all viable SMEs have access to an appropriate supply of credit from a diverse range of bank and non-bank sources. In this regard the Government has developed a number of initiatives to ensure that the supply of credit in the market is sufficient to meet the existing and future needs of SMEs.
As the Deputy is aware, a key objective of the Strategic Banking Corporation of Ireland (SBCI) is to ensure that SMEs can access low cost flexible loans from a variety of sources. The SBCI channels its funds through lending partners known as on-lenders. The SBCI currently has three bank on-lending partners and five non-bank on-lending partners. The SBCI has a current funding capacity of €1.05 billion which it makes available to its on-lending partners as demand from SMEs arises. To the end of September 2016, a total of €458 million has been lent to over 10,600 SMEs and the SBCI has committed a total of €906 million to its eight on-lending partners. In 2017, the SBCI will continue to make significant funding available to SMEs across Ireland.
Another recent initiative is the €150 million Cash Flow Support Loan Fund for Farmers announced by the Department of Agriculture, Food and the Marine. This fund will provide highly flexible, low interest loans to farming SMEs.
The Microenterprise Loan Fund, administered by Microfinance Ireland, is an additional source of credit that provides loans of up to €25,000 to start-up, newly established, or growing micro enterprises employing less than 10 people.
The Credit Review Office is another government initiative that helps SMEs who have had an application for credit of up to €3 million declined or reduced by the main banks, and who feel that they have a viable business proposition. This is a strictly confidential process between the business, the Credit Review Office and the bank. The Credit Review Office overturns more than 50% of appeals it receives.
The Government remains committed to the SME sector and sees it as the key engine of ongoing economic growth. I can assure the Deputy that my Department, working with other relevant Departments, Bodies and Agencies, such as the Credit Review Office, will continue to advance policies to ensure the availability of both bank and non-bank credit so as to ensure that viable Irish SMEs have sufficient access to finance.
