Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Small and Medium Enterprises Supports

Dáil Éireann Debate, Thursday - 29 March 2018

Thursday, 29 March 2018

Ceisteanna (251)

Niall Collins

Ceist:

251. Deputy Niall Collins asked the Minister for Business, Enterprise and Innovation her views on a proposal by an organisation (details supplied). [14919/18]

Amharc ar fhreagra

Freagraí scríofa

The provision of State supported hedging products, or similar products aimed at subsidising an exchange rate, is prohibited under EU State Aid rules.  However, there are multiple financial providers active in the Irish market that can provide a comprehensive and competitive range of hedging and foreign exchange products to SMEs who require them.

Viable Irish SMEs can access sustainable, flexible and appropriately priced finance through the Credit Guarantee Scheme (CGS) currently operated by the Strategic Banking Corporation of Ireland (SBCI).  The SBCI uses an on-lending model; this means it does not lend directly to SMEs, rather it channels its funds though partner financial institutions, known as on-lenders.  Since its establishment in 2012, 530 facilities have been sanctioned under the CGS, amounting to €84.4 million.   As a result of the facilities sanctioned under the CGS to SME’s, 2104 new jobs have been created and 1186 jobs have been maintained.  The main reason provided by SME’s for seeking finance was for working capital purposes which accounted for 67% of all CGS facilities.

The Microenterprise Loan Fund is also available through Microfinance Ireland (MFI).  Since its inception in 2012, 3,441 applications have been received, with the value of loans approved to the end of 2017 amounting to €22.6 million.  This facility has supported 3952 jobs (net) in 1,567 micro-enterprises.  

As the Deputy will be aware, there are already significant Government measures to support the financing needs of SMEs; in addition to the supports mentioned, these supports include the Supporting SMEs Online Tool, Local Enterprise Offices, the Credit Review Office and the recently announced Brexit Loan Scheme. 

Advisory supports in relation to business planning, such as those provided by the Local Enterprise Offices and Enterprise Ireland, are also particularly important in assisting viable but vulnerable SMEs that may be adversely affected because of Brexit and other challenges.  These supports help raise awareness of both private market financial supports and existing State supports.

Barr
Roinn