Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

There is no interest for the first six months and then a rate of 4.5% applies for the remainder of the period. I put it to the Secretary General that these loan schemes have been such a failure, as outlined by business representative bodies and individual business people, because of the criteria and the interest rates. Let us look at what is happening in Britain, our nearest competitor. Here a total of €80 million has been drawn down from three flagship loan schemes. In Britain, the drawdown in respect of the bounce back loan scheme has been €20 billion, multiples of what has been drawn down here. Why? Zero interest is applied in the first 12 months, zero capital repayment is required after that and the interest rate is only 2.5% for the following 12 months. Do the Department and the Minister really believe, at a time when so many SMEs are struggling to survive, that what will meet their needs is the provision of loans with interest rates of 4.5% when other jurisdictions are providing loans with interest rates of 0% and when the State can borrow on the markets at negative interest rates? Why are we unwilling to pass that lending ability on to businesses we need to survive in order to ensure that as many people as possible go back to work?