Michael Creed (Cork North West, Fine Gael) | Oireachtas source

The Deputy has stumbled across one of the dilemmas in the context of this proposal, namely, whether it is a working capital scheme or a capital investment scheme. My Department is engaged in consultations with the SBCI on that matter. The previous scheme was, as the Deputy said, a working capital scheme. An interest rate of 2.95% applied on that occasion, but the trade-off between the interest is in the volume of the fund that one can leverage. There was more demand in respect of previous funds than there was funding available. The outturn in respect of the previous fund was €150 million and there were 4,246 approved borrowers. The average loan was €34,000 and the average loan period was 41 months. If we opt for a lower interest rate, we will have a smaller fund. This scheme was oversubscribed. The question is what is most advantageous and whether it is a working capital or a capital investment fund to assist on-farm investment in primary production or the fishing industry. These issues are being teased through. We have had the initial €150 million. We have €300 million now for SMEs. I am trying to get this done as quickly as possible. It is not simply a case of having €25 million and therefore having a scheme. It takes much engagement with the European Investment Bank, the SBCI, the pillar banks here and the Department of Finance. There are many moving parts. I am trying to get it as quickly as possible but it will likely be the back end of the year.

See this speech in context