Dáil Éireann Debate, Tuesday - 30 January 2018
154. Deputy Joan Burton asked the Minister for Finance the work his Department has carried out with the Strategic Banking Corporation of Ireland, SBCI to develop loan products targeting agribusiness and SMEs seeking finance to tackle Brexit-related challenges; and if he will make a statement on the matter. [4160/18]
Amharc ar fhreagraThe purpose of the Strategic Banking Corporation of Ireland, SBCI, is to deliver effective financial supports to Irish SMEs as well as other sectors, in time, that address failures in the Irish SME finance market, while driving competition and innovation and ensuring the efficient and optimal use of available EU resources. The SBCI has a vital role to play in meeting the evolving finance needs of the SME finance market, across all sectors and regions, to ensure its sustainable development.
Additionally, the SBCI has been developing risk sharing guarantee products to enhance access to finance during the course of 2017. As announced in Budget 2017, the SBCI in conjunction with Department of Agriculture, Food and the Marine, DAFM, rolled out a €150 million Agriculture Cashflow Support Loan scheme to provide working capital support to farmers to deal with price and income volatility.
The SBCI is also tasked with delivering the €300 million Brexit Loan scheme, as I announced in Budget 2018. The Scheme has been developed by the Department of Business, Enterprise and Innovation, the Department of Finance, the Department of Agriculture, Food and the Marine, and Enterprise Ireland. The SBCI engaged with the European Investment Fund, EIF, to utilise an Innovfin counter guarantee facility to support the Brexit Loan Scheme. The purpose of the Scheme is to assist Irish SMEs and Small Midcap firms - less than 499 employees - affected by Brexit with their working capital needs to allow them to diversify and restructure their businesses and adapt and innovate in response to Brexit.
The SBCI is continuing to work on a number of risk sharing initiatives, particularly the continued use of guarantees with European counter-guarantees to support lending by finance providers. These aim to address sectorial market failures as well as the collateral limitations of SMEs and collateral obligations of banks. It is particularly welcome to note that these risk-sharing initiatives are open to banks and non-bank lenders.
My colleague, the Minister for Agriculture, Food and the Marine, secured funding of €25 million for his Department in Budget 2018 to facilitate the development of potential Brexit response loan schemes for farmers, fishermen and for longer-term capital financing for food businesses. I understand that these are currently under active consideration and more details will be announced as they become available.
