John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Question 69: To ask the Minister for Finance if there are any incentives available for a private citizen or corporation to provide a loan to a small or medium enterprise; if there are, the terms of such schemes; if there are no such incentives, if any consideration has been given to such schemes by him; and if he will make a statement on the matter. [27841/11]

Michael Noonan (Limerick City, Fine Gael)
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I presume the Deputy is referring to any tax incentives. The Business Expansion Scheme (BES) is already available to encourage investments in certain small and medium-sized businesses. Private citizens can provide investments under this scheme provided they are not considered "connected" for the purposes of the scheme.

This scheme is being amended to become the Employment and Investment Incentive. Under the new incentive, the lifetime limit that can be raised by companies will be increased from €2 million to €10 million, and the amount that can be raised in any twelve-month period will be increased from €1.5 to €2.5 million. The certification requirements will also be simplified. Full details of the incentive were set out in Section 33 of Finance Act 2011. However, the measure is subject to the approval of the European Commission. Pending the receipt of this approval, the existing BES will continue to operate.

In addition to the BES, firms in the normal course of events, may be able to claim interest relief on loans made to other firms, as a legitimate business expense.

Incentives for businesses, other than tax incentives, are a matter for my colleague, the Minister for Jobs, Enterprise and Innovation.

At present, I have no plans for any other specific tax incentive in this area.