Dominic Hannigan (Meath East, Labour)
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To ask the Minister for Jobs, Enterprise and Innovation if any consideration has been given to the setting up for a youth entrepreneurship fund to help stimulate young persons to set up their own businesses; if any discussions have been held with the Department of Public Expenditure and Reform on such a proposal; if not, if he will consider setting up such a fund in conjunction with the banks and other possible stakeholders; and if he will make a statement on the matter. [47134/12]

Richard Bruton (Dublin North Central, Fine Gael)
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The Government established the Microfinance Loan Fund on 27 September 2012 to improve access to credit for entrepreneurs and micro-enterprises and to facilitate the growth and expansion of viable businesses from all industry sectors which have been refused access to credit by banks. The Fund has a significant entrepreneurship focus and is open to entrepreneurs and aspiring entrepreneurs of all ages. It will add value to other Government schemes of support for entrepreneurs, aspiring entrepreneurs and unemployed persons, such as the Back to Work Allowance, the range of training programmes available or the Seed Capital Scheme. The Fund will provide support in the form of loans of up to €25,000, available to start-up, newly established, or growing microenterprises employing less than 10 people, with viable business propositions, that do not meet the conventional risk criteria applied by banks. The potential viability of the business proposal will be the dominant factor in all credit decisions.

Microfinance Ireland (MFI), the company set up to operate the Fund, will work closely with the County and City Enterprise Boards (CEBs) / Local Enterprise Offices which provide assistance with training and preparing business plans for entrepreneurs. They will carry out an initial evaluation of the quality of business proposals/loan applications from entrepreneurs before sending same on to MFI for decision. Young entrepreneurs can also contact their local County Enterprise Board to discuss what other options may be available to them and their proposed business venture. Contact details for the CEBs can be found on . CEBs provide both financial and/or non-financial assistance and the introduction of the Microfinance Loan Fund completes the suite of supports they now have to make available to microenterprises and entrepreneurs. MFI and the CEBs are very conscious of the particular difficulties the youth sector faces with regard to credit history, previous business experience etc. and where they can assist young entrepreneurs, they will. However, the potential viability of the business proposal is the dominant factor in any credit decision made by Microfinance Ireland.