Seán Sherlock (Cork East, Labour)

I am bringing in a series of targeted initiatives to make it easier for micro-enterprises and small and medium enterprises to access credit. The micro-enterprise loan fund scheme, which is expected to be operational from early autumn, will facilitate up to €40 million in additional lending to micro-enterprises over the next five years. The Government is in the process of introducing the temporary partial loan guarantee scheme for micro-enterprises and small and medium enterprises which, because of a lack of collateral or the sector in which they operate, face difficulties in accessing traditional bank credit.

These initiatives coupled with the recently launched second call under the innovation fund and the development capital scheme will strongly contribute to addressing the credit needs of business and facilitate business modernisation and expansion, in addition to the creation and maintenance of jobs.

Furthermore, the Minister recently met the CEOs of the two pillar banks to impress upon them the importance of keeping their lending practices in tune with the changing needs of Irish companies. Enterprise Ireland is working closely with the banks to develop credit propositions for exporters and technology companies that are suited to different stages of growth - start-ups, early stage and mature companies - and to adopt cash flow lending as opposed to the asset-backed approach that has been the norm in recent years.

My Department is working closely with the Department of Finance and the Credit Review Office to evaluate evidence on credit availability and ensure the amount of credit flowing to the SME sector is maximised to facilitate sustainable job creation and retention.

My colleague, the Minister of State responsible for small business, Deputy Perry, continues to meet business owners on a regular basis to hear at first hand their views and experiences and to examine further the actions that might be taken to improve access to credit for SMEs.

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