Dessie Ellis (Dublin North West, Sinn Fein)
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Question 19: To ask the Minister for Jobs, Enterprise and Innovation if he will provide an update on the due diligence process with the European Investment Fund in regard to the micro finance fund. [33869/12]

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. Capped guarantees may be provided to eligible intermediaries partially covering their portfolios of micro-loans, or loan facilities may be availed of to increase lending to micro-enterprises.

Initial engagement has taken place between the Social Finance Foundation, who will administer the Microenterprise Loan Fund on my behalf, and the EIF in relation to availing of the EU Progress Microfinance Guarantee Facility. Formal application will be made for the EU Progress Microfinance Guarantee Facility following enactment of the legislation, which provides for the establishment of the microfinance lending entity, Microfinance Ireland, later this month. A rigorous due diligence process is required to secure EIF accreditation, and this will take place during the months of August and September, once the legislation is enacted.