Pearse Doherty (Donegal South West, Sinn Fein)
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74. To ask the Minister for Jobs, Enterprise and Innovation the credit options or State support a farmer wishing to invest but unable to access funding through the banks might avail of. [4630/14]

Richard Bruton (Dublin North Central, Fine Gael)
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Without having the specific detail of the particular type of farming investment that the Deputy is referring to, it is difficult to prescribe appropriate options available for the enterprise in question. In relation to being unable to access bank funding, the enterprise can seek support from the Credit Review Office who accept applications from SMEs, sole traders and small and medium-sized farm enterprises that have had their application for credit refused or reduced or have had credit facilities withdrawn, and who feel that they have a viable business proposition and feel that the bank’s decision is unjustified.

Depending on the type of activity proposed, the enterprise may be eligible to access credit through either Microfinance Ireland or the SME Credit Guarantee Scheme, two schemes introduced by my Department. Microfinance Ireland provide loans for up to €25,000, available to start-up, newly established, or growing microenterprises, with viable business propositions, that do not meet the conventional risk criteria applied by banks. The SME Credit Guarantee Scheme (CGS) supports SMEs who, because of lack of collateral or because of the sector they operate in, face difficulties in accessing traditional bank credit. The assistance provided through both of these initiatives, like many Government-backed business support activities, are regarded as State Aid and are governed according to the European Commission's De Minimis State Aid rules. Therefore primary agricultural production (i.e. farming) is excluded from both Schemes. However, investment for the purpose of value-adding downstream processing and marketing activities are regarded as being “industrial” and so are eligible for the Microfinance and SME Credit Guarantee Schemes.

We continue to have a very strong focus on delivering new and innovative ways to tackle access to finance issues, in recognition of the huge importance that it plays for enterprise growth and overall economic recovery. The Action Plan for Jobs 2014 will continue the work undertaken by the Government since taking office to support and improve access to finance for SMEs. I will soon be launching the Action Plan for Jobs 2014 which will set out in detail the actions we will be taking this year to address challenges in this arena.