Emmet Stagg (Kildare North, Labour)
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Question 41: To ask the Minister for Enterprise, Trade and Innovation when the proposed Government-backed loan guarantee scheme for viable small businesses will be established; the criteria that will be used for qualification for the scheme; and if he will make a statement on the matter. [45535/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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As I outlined in my reply to Priority Question No. 69 on Wednesday 13 October 2010, my officials are working with their colleagues in the Department of Finance, the Credit Review Office, Enterprise Ireland and Forfás to address access to credit issues for viable SMEs, including the option of a loan guarantee scheme to assist the working capital requirements of SMEs. This ongoing work is aimed at building on the already substantial progress that has been made in identifying the critical elements for further initiatives. It is important that any new initiatives complement, rather than substitute, the main banks' lending commitments and activities under the recapitalisation package and that they would represent value for money from the taxpayer's perspective.

The Deputy's question refers specifically to criteria to be used in any new scheme. While the specific issues are still under discussion, it is possible that any new initiative would only apply to commercially viable businesses that, despite having demonstrated the ability to repay, were unable to secure lending facilities due to known market failures. An example of such a failure would be lack of information concerning certain business sectors, certain types of business model and certain foreign markets. Loan guarantees, are just one of a range of possible measures being considered to address SME credit availability. Proposals for any new measures will be considered by Government in the first instance.