Seán Fleming (Laois-Offaly, Fianna Fail)
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To ask the Minister for Jobs, Enterprise and Innovation if he will outline the details in relation to the new credit guarantee scheme; if new start up businesses can apply under this scheme; the percentage of the State guarantee that will be provided in these cases; the number of enquiries and the approvals that have taken place under this scheme to date; and if he will make a statement on the matter. [51358/12]

Richard Bruton (Dublin North Central, Fine Gael)
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The Credit Guarantee Scheme is targeted at commercially viable, well performing micro, small and medium enterprises including start-ups that have a solid business plan and a defined market for their products or services, thereby demonstrating their ability to repay the loan. The Scheme provides a 75% State guarantee to banks against losses on qualifying enterprises to facilitate lending that would not otherwise take place. The Scheme is intended to address two distinct barriers to lending; inadequacy of collateral (Pillar 1) and inadequacy of understanding of the novelty of a business model, market, sector or technology (Pillar 2).

The lender assesses viability according to its normal assessment criteria and the decision of the lender in terms of assessing viability is final. Guarantees may be provided for any loan value between €10,000 and €1 million. The borrower pays a 2% annual premium which partially covers the cost of providing the guarantee. Use of the Scheme is limited to additional new lending, with refinancing of existing debt explicitly excluded.

As the Deputy will be aware, the Scheme went live on Wednesday 24th October. At this early stage, the number of approved guarantees on Friday 16th November is two.

Bank of Ireland, AIB and Ulster Bank are participating in the Scheme. Initial enquiries regarding the Scheme are not currently being monitored as potential borrowers are being advised to contact the participating banks directly. The Department will of course keep a close eye on developments in respect of the scheme as matters unfold.