Jonathan O'Brien (Cork North Central, Sinn Fein)
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32. To ask the Minister for Jobs, Enterprise and Innovation the steps he will take to review and enhance the microenterprise loans fund and loan guarantee scheme to ensure that lending targets are reached in 2014. [2949/14]

Richard Bruton (Dublin North Central, Fine Gael)
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When I introduced both these schemes to the House I clearly indicated that the take-up of both schemes is dependent on SME customer demand levels. Potential demand from SMEs is very difficult to assess and for this reason I did not set lending targets for the Schemes.

As of 17 January, 2014 Microfinance Ireland (MFI), has approved 149 applications to the value of €2.32m supporting 333 jobs.

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.

As of 17 January, 2014 the SME Credit Guarantee Scheme has 77 live facilities resulting in €10.5m being sanctioned through the scheme by the participating lenders resulting in 408 new jobs being created and 247 jobs being maintained.

As take-up continued to be lower than anticipated, I commissioned an independent review of the Scheme, which was submitted to me in Q3 2013. Since then my Department has worked with the Review Steering Group to determine the changes that can to be made to the Credit Guarantee Act 2012, and the contents of a new Credit Guarantee Scheme, on foot of this review. This complex work is progressing as quickly as is practicable. The review also contained a number of recommendations outside of the legal framework such as awareness raising that can be pursued without the need for legislative changes. In addition, my Department has been working with the Irish Banking Federation to determine the likely take-up of the revised Scheme.

I will ensure these changes to the Credit Guarantee Scheme are made in 2014 through the Action Plan for Jobs 2014 and I will implement the review recommendations, as appropriate, with a view to enhancing the up-take and impact of the Scheme as soon as possible.