Pat Breen (Clare, Fine Gael)
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Question 229: To ask the Minister for Finance if Irish small and medium enterprises may apply for funding under the EU's risk sharing finance facility; and if he will make a statement on the matter. [48227/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Risk Sharing Finance Facility, based on the principle of sharing credit risk between the European Community and the European Investment Bank (EIB), is an EIB lending facility intended to improve access to debt financing for private companies and public institutions promoting research, development and innovation activities. The scope of eligible activities is wide and extends from traditional "brick and mortar" investments to equipment and soft investments such as R&D operating cost, salaries of researchers, management and support staff, utilities, consumables, acquisition or protection costs for intellectual property rights and, under certain conditions, leasing and depreciation. Projects to be financed by the EIB need to be technically, economically, financially and environmentally feasible according to the Bank's project evaluation criteria. I understand that funding from the Facility, under which the EIB can provide finance to higher-risk creditworthy research development and innovation projects up to a total of €10 billion, is open to small- and medium-sized enterprises in the form of risk-sharing lines of credit through the EIB's banking partners. I further understand that discussions have taken place between the EIB and Irish financial institutions with regard to accessing finance under the Facility.

This facility is in addition to the €30 billion facility for increasing lending to small- and medium-sized enterprises announced by the EIB on 3 October 2008 and through which four banks operating in Ireland have access to €350 million. These funds are being successfully onlent to small- and medium-sized enterprises for investment and I understand that EIB will be in further discussions with Irish banks with a view to providing access to additional funds.