Finian McGrath (Dublin North Central, Independent)
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Question 261: To ask the Minister for Jobs, Enterprise and Innovation if he has facilitated a microcredit provider to access the progress microfinance facility in order to issue guarantees to small and medium enterprises or to provide funding to increase microcredit lending; and if he will make a statement on the matter. [24151/11]

Richard Bruton (Dublin North Central, Fine Gael)
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The European Progress Microfinance Facility is a European Investment Fund (EIF) initiative to support entrepreneurship and employment through microfinance activities. The EIF does not provide direct financing to micro-entrepreneurs, micro-businesses or individuals.

Financing is made available through intermediaries participating in the Facility. Eligible intermediaries are any public and private institutions that provide microfinance loans and/or guarantees to individuals, or micro-enterprises established in the EU Member States. Applications for participation do not require State involvement.

EIF provides to selected intermediaries, capped guarantees partially covering their portfolios of micro-loans, or guarantees on micro-loans granted to micro-enterprises, including self-employed people, female entrepreneurs, young entrepreneurs, entrepreneurs belonging to a minority group, entrepreneurs with a disability and sole traders. To apply to become an intermediary, interested institutions must submit a formal application for Progress Microfinance micro-credit guarantee directly to the EIF. Applications can be made until 31 December 2013.

As the Deputy will be aware, work is underway within my Department on the establishment of a Microfinance Fund as set out in the Programme for Government which is intended to provide loans to micro-enterprises. The Fund, including scheme design and appropriate delivery mechanisms, will be developed with a view to formalising proposals in the context of Budget 2012.

In the context of developing a Microfinance Fund, there has been contact with the EIF to explore the possibilities of accessing the Progress Microfinance Facility to support any national Fund being established. This matter will be pursued further with the EIF when arrangements for a national Microfinance Fund are being finalised.