Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Covid-19 Pandemic Supports

Dáil Éireann Debate, Wednesday - 28 April 2021

Wednesday, 28 April 2021

Ceisteanna (152)

Jim O'Callaghan

Ceist:

152. Deputy Jim O'Callaghan asked the Tánaiste and Minister for Enterprise, Trade and Employment the status of the operation of the COVID-19 credit guarantee scheme; the number of businesses that have availed of the scheme to date; and if he will make a statement on the matter. [22195/21]

Amharc ar fhreagra

Freagraí scríofa

The COVID-19 Credit Guarantee Scheme is the largest loan guarantee scheme in the history of the State.   The Scheme provides €2 billion in lending, for terms up to five-and-a-half years and offers a range of lending products between €10,000 and €1 million at interest rates below market rates for similar type loans.  It is available to SMEs and small mid-caps (business with less than 500 employees), including primary producers (businesses engaged in the farming and seafood sectors).  The Scheme is available until 31 December 2021 following a Government decision in March to extend it in line with the extension of the European Commission’s Temporary Framework on State Aid.

There have been 4,280 loans drawn for a value of €264.6 million under the Scheme up to 15 April (latest data available from participating lenders). These loans are being drawn from all over the country.  This scheme is providing vital access to lending facilities for a wide range of sectors.  Businesses which have been most impacted by the effects of the virus are utilising the Scheme.  The wholesale and retail sector accounted for twenty percent of loans drawn, the accommodation and food services sector accounted for fourteen percent of loans drawn, and the primary agriculture and fisheries sector accounted for twelve percent of loans drawn by value, demonstrating that funding is getting to where it is most needed.

In order to provide the public with relevant data on the performance of the scheme, my Department publishes weekly and monthly reports on its website.  These reports provide data on loans drawn under a wide variety of themes and are available at https://enterprise.gov.ie/en/Publications/COVID-19-Credit-Guarantee-Scheme-Performance-Reports.html

These loans have helped maintain jobs across the economy during this very difficult time for business, with 22,951 jobs maintained up to the end of March with a potential of an increase of 3,488 jobs.

The Scheme is currently available through three commercial banks, four non-bank lenders and nineteen credit unions.  This long-term policy goal of diversification adds competition in the market and ensures a wide range of loan products are available throughout the regions.

I would strongly encourage businesses to avail of the low-cost lending facilities provided under the scheme as they look towards reopening.

Barr
Roinn