Written answers

Thursday, 23 January 2014

Department of Jobs, Enterprise and Innovation

Microenterprise Loan Fund Application Numbers

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Independent)
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102. To ask the Minister for Jobs, Enterprise and Innovation his plans to revamp the micro-enterprise loan fund; and if he will make a statement on the matter. [3413/14]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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104. To ask the Minister for Jobs, Enterprise and Innovation the number of applications received by the microenterprise loan fund to date; the number of loans approved; the total amount drawn down; the number of jobs supported by the fund; his plans for its future development; and if he will make a statement on the matter. [3436/14]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 102 and 104 together.

The Microfinance Loan Fund Scheme facility was introduced in October 2012 following demands from business interests for the introduction of supports for microenterprises in a difficult economic environment. It has now developed a presence in the Irish financial market.

As of 17 January 2014 MFI, has approved 149 applications to the value of €2.32m supporting 333 jobs. The latest progress report detailing the analysis and performance for the quarterly period ending 30th September 2013 is available on my Department’s website. I intend to publish the next progress report for the period to December 2013, once the report has been finalised.

The key challenge for MFI is to ensure that people are aware that there is support for new and existing viable micro enterprises with perceived or real higher trading risk that have been refused credit by banks. In that regard MFI has been engaged with key influencers across the country to get that message across. There are on-going promotional and awareness activities to ensure that awareness of the scheme is promoted to its full potential amongst relevant micro business groups across all sectors of business. MFI has also undertaken a number of publicity and awareness raising activities since it began lending, including radio advertisements and attending local business network meetings. In addition, the Minister for Small Business and I promote the scheme at every available opportunity, locally, regionally and nationally.

Take-up to date may be a reflection of the muted level of demand for credit as evidenced in the Department of Finance commissioned SME Credit Demand Surveys.

My Department and the Microenterprise Loan Fund operator, MFI have committed significant time and resources to the establishment and operation of this Fund. While my officials engage with MFI on an on-going basis in how the Fund is being delivered, I will commence a review of the operation of the Microenterprise Loan Fund Acts 2012 by July 2014. The purpose of the review will be to enhance the uptake and impact of the Fund and I can assure the Deputy that I will take all recommendations into consideration with a view to improving the overall take-up of the Fund.

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