Tom Fleming (Kerry South, Independent)
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Question 97: To ask the Minister for Jobs, Enterprise and Innovation the immediate action he will take to assist small to medium enterprises and the farming community who are finding it increasingly difficult to secure loans to expand or start up their businesses; his views on the negative impact this is having on maintaining and creating jobs; and if he will make a statement on the matter. [31090/12]

Richard Bruton (Dublin North Central, Fine Gael)
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A key part of our Action Plan for Jobs is to ensure that we have more businesses establishing, succeeding, expanding, and creating employment. To achieve this, we are implementing a series of targeted initiatives to make it easier for small businesses to access credit. The Microenterprise Loan Fund Bill was published on Friday 22nd June following Government decision last Tuesday (19th ). The Microenterprise Loan Fund Scheme, which is expected to be operational from early autumn, will facilitate up to €40million in additional lending to microenterprises including the farming community over the next five years.

It will, I believe, prove to be a practical way of improving access to credit for microenterprises employing not more than 10 staff across all industry sectors in both the locally traded and the exporting sectors. The Scheme will provide loans up to €25,000 for commercially viable proposals that do not meet the conventional risk criteria applied by the banks for various reasons, including the absence of collateral. In order to be eligible for the scheme, a request for credit must first have been declined by the banks.

In addition to the Microfinance Loan the Government is in the process of introducing the €150m, Temporary Partial Loan Guarantee Scheme for SME's who because of lack of collateral or because of the sector they operate in face difficulties in accessing traditional bank credit. Primary production in agriculture, horticulture and fisheries are excluded from the scope of this Scheme in the light of particular restrictions under State Aid Rules and because the specific market failures identified do not apply to a significant extent in these sectors. The food and drinks sectors will be eligible for the Scheme.

This suite of initiatives coupled with existing actions in respect of the Innovation Fund and the Development Capital Scheme will strongly contribute to addressing the credit needs of business and facilitate the creation and maintenance of jobs.