Dáil debates

Thursday, 16 October 2014

Ceisteanna - Questions - Priority Questions

Credit Availability

10:00 am

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael) | Oireachtas source

As I stated previously, the Government has made more than €2 billion in financial supports available to Irish SMEs to support growth and job creation in the economy. Through the seed and venture capital scheme 2013 to 2018, the microenterprise loan fund and the renewed credit guarantee scheme, we are making more than €1.6 billion available in the coming years to SMEs through both credit facilities and direct investments. In addition, the Government, through the National Pension Reserve Fund, made €850 million available from 2013 through its three SME funds. It introduced the credit guarantee scheme and the microenterprise loan fund in 2012 which have now been operating for two years, as discussed with Deputy Dara Calleary. The next progress reports, to 30 September 2014, will be published shortly. As of 30 June, the credit guarantee scheme had 93 live facilities, resulting in €12.2 million being sanctioned through the scheme. Microfinance Ireland had approved 258 applications, to the value of €4.11 million.

In regard to other new sources of funding for SMEs, the seed and venture capital funds invested €75 million in 2013. The development capital funds have commenced investments and it is anticipated that they will invest €62.5 million this year. Later this year the Strategic Bank Corporation of Ireland will commence offering new credit lines to SMEs. Banks remain a core source of funding for SMEs. The latest figures show that new lending to small business is growing and that the rate of bank refusals is falling.

Credit will continue to be an issue, but as the economy improves, we envisage that the Government will increasingly see our strong companies attracting credit. There will continue to be a very strong focus on ensuring access to finance across the spectrum is available to SMEs. We will not be able to rely so much on banks and will have to have these alternative sources to sustain our continued recovery.

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