Seán Sherlock (Cork East, Labour)

The microenterprise loan fund will facilitate the growth and expansion of all viable microenterprises from all industry sectors across the country that have been refused access to credit from the banks. It is a key element in our Action Plan for Jobs. The fund has a significant entrepreneurship focus to encourage all would-be entrepreneurs across the country who may be unemployed but who have the potential to generate employment for themselves and others. It will not have geographical quotas but will be of particular help to persons who are unemployed who would have much greater difficulty accessing conventional sources of bank lending. It will be promoted through a range of networks across the country, including local bodies that support business start-up for people with fewer resources, and in areas of high unemployment. It will not be confined to businesses with export potential and will be more within the reach of unemployed persons who target business opportunities within their own local communities. It will form an important complementary element and add value to schemes of support, such as the back to work allowance. Support will be in the form of loans, rather than grants.

Loans will be made available to start-up, newly established or growing microenterprises with viable business propositions that do not meet the conventional risk criteria applied by banks. The potential viability of the business proposal will be the dominant factor in all credit decisions. It will ultimately be for enterprises to apply for the loans so it will be demand-led in that sense. It is envisaged that mentoring will be an important element in the success of the fund. Delivery of business supports including business planning and mentoring to facilitate successful credit applications will be facilitated through the national network of existing bodies and agencies. The county and city enterprise boards are often the first port of call for business support and advice, and they will be actively involved in the promotion of the microfinance fund across the country.

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