Dáil Éireann Debate, Wednesday - 11 May 2022
59. Deputy Niamh Smyth asked the Tánaiste and Minister for Enterprise, Trade and Employment if the case of a person case (details supplied) will be reviewed; if clarity will be provided on this matter in relation to this scheme; and if he will make a statement on the matter. [23647/22]
Amharc ar fhreagraOn 19 March 2020, the European Commission adopted a Temporary Framework to enable Member States to use the full flexibility foreseen under State aid rules to support the economy and help overcome the extremely difficult situation triggered by the Coronavirus outbreak. The COVID-19 Credit Guarantee Scheme (CCGS) has been developed in accordance with the European Commission’s State Aid Temporary Framework. It has been approved by the European Commission on the basis that it will be used by viable businesses for working capital/liquidity requirements and investment purposes to meet the challenge of a changed working environment arising from COVID-19.
The CCGS was developed as a time-bound loan scheme with a state guarantee to provide loans to meet working capital and liquidity requirements. Loans can also be used for investment purposes as businesses deal with a changing working environment as a consequence of the pandemic. Typically loans for investment purposes relate to purchasing new equipment, a refit of premises or investment in a new product or process.
The scheme is available to a wide range of sectors with a small number of exceptions which includes the financing of real estate activity. The details provided in relation to this case refer to a loan application for the redevelopment of commercial premises to residential apartments for renting purposes. Such activity is beyond the scope and purpose for which the scheme was developed.
This Department plays no role in the decision-making process in relation to loan applications under the CCGS. Officials are in regular contact with the Strategic Banking Corporation of Ireland (SBCI), the operator of the scheme, on matters which come within the remit of the Department.
The business owner referred to in this correspondence has been in contact with individuals within his bank. They have reviewed the initial decision and have correctly stated that this particular application falls outside the parameters of the CCGS. He could look to apply for a loan through their standard non-government supported facilities. If he was unsuccessful in this application he could look to have it appealed within the bank's own internal systems. If this appeal is unsuccessful, he may also consider a further appeal to the Credit Review Office (CRO). The CRO 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 and the bank. Further information is available at www.creditreview.ie/.
