Thursday, 4 July 2019

Ceisteanna (111)

Michael McGrath

Ceist:

111. Deputy Michael McGrath asked the Minister for Finance the number and value of Strategic Banking Corporation of Ireland loans approved each year since it was established; the number and value of loans issued each year for the same years by sector in the economy in tabular form; and if he will make a statement on the matter. [29025/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

The Strategic Banking Corporation of Ireland (SBCI) is Ireland’s national promotional institution. The purpose of the SBCI is to deliver effective financial supports to Irish SMEs, address gaps and potential failures in the Irish SME finance market, as well as encouraging competition and innovation, and facilitating the efficient and effective use of EU resources and financial instruments. The SBCI achieves this through the provision of low cost liquidity and risk-sharing guarantee activities that support the provision of appropriately priced, flexible funding to Irish SMEs.

Instead of lending directly to SMEs, the SBCI operates through partner finance providers, known as on-lenders. The SBCI has provided funding to a mixture of both banks and non-bank finance providers and currently has 6 on-lenders, 3 bank and 3 non-bank finance providers: AIB, Bank of Ireland, Ulster Bank, Finance Ireland Limited, Bibby Financial Services Ireland, and FEXCO Asset Finance.

The SBCI’s priority is meeting the credit needs of SMEs not currently being fully met by the private sector. Consequently, the SBCI’s lending to SMEs is largely driven by market demands. Figures provided by the SBCI to my Department show that, since the SBCI began its activities in March 2015, to the end of December 2018, the total amount of SBCI supported lending activity, through the provision of liquidity, was €900 million to 21,783 Irish SMEs supporting 141,658 jobs. Under the SBCI’s risk sharing schemes, €152 million has been drawn down by 4,278 SMEs, this has supported 6,572 jobs. The SMEs who have received SBCI finance are from a variety of business sectors with agriculture consistently representing the largest sector.

A breakdown of the SBCI’s supported lending for each year and broken down by sector is provided in the following tables:

2015

Liquidity Scheme: 4,558 loans drawn totalling €205,729,822

Sector

Number

Value

Accommodation & Food Service

6%

15%

Admin & Support Service

17%

10%

Agriculture

38%

23%

Construction

5%

2%

Manufacturing

5%

10%

Other

9%

15%

Professional & Scientific

4%

4%

Transport & Storage

3%

3%

Wholesale & Retail Trade

13%

18%

2016

Liquidity Scheme: 8,161 loans drawn totalling €367,896,310

Sector

Number

Value

Accommodation & Food Service

6%

14%

Admin & Support Service

16%

9%

Agriculture

37%

22%

Construction

7%

5%

Manufacturing

5%

7%

Other

9%

15%

Professional & Scientific

4%

5%

Transport & Storage

4%

5%

Wholesale & Retail Trade

12%

18%

2017

Liquidity Scheme: 6,099 loans drawn totalling €215,508,073

Sector

Number

Value

Accommodation & Food Service

5%

9%

Admin & Support Service

13%

12%

Agriculture

42%

28%

Construction

9%

9%

Manufacturing

4%

7%

Other

8%

12%

Professional & Scientific

3%

3%

Transport & Storage

4%

5%

Wholesale & Retail Trade

12%

15%

Agriculture Cashflow Support Loan Scheme: 4,247 loans drawn totalling €144,945,687

Sector

Number

Value

Beef

47%

39%

Dairy

38%

45%

Horticulture

1%

1%

Other

6%

5%

Pigmeat

1%

1%

Sheepmeat

3%

2%

Tillage

4%

7%

2018

Liquidity Scheme: 2,987 loans drawn totalling €110,636,574

Sector

Number

Value

Beef

47%

39%

Dairy

38%

45%

Horticulture

1%

1%

Other

6%

5%

Pigmeat

1%

1%

Sheepmeat

3%

2%

Tillage

4%

7%

Brexit Loan Scheme: 60 loans drawn totalling €13,645,025

Sector

Number

Accommodation & Food Service

2%

Agriculture (Non Primary)

2%

Construction Sector

3%Number

ManufacturingAccommodation & Food Service

30%2%

Other

30%

Professional & Scientific

6%

Wholesale & Retail Trade

27%

The SBCI continues to work on developing new innovative products, such as the Brexit Loan Scheme, and the Future Growth Loan Scheme. The Deputy may rest assured that the SBCI is working to develop a more diverse range of on-lenders and innovative products. This means it is constantly adapting to meet the evolving requirements of the SME finance market, and contribute to a sustainable, inclusive and competitive economy.